MATHA

Lyn Elms
Nick Simpson
Tony MacPherson
S
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N
D

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T
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YE AR
MATHS A
FOR QUEENSLAND
S
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12
Second edition published 2010 by
John Wiley & Sons Australia, Ltd
42 McDougall Street, Milton, Qld 4064
First edition published 2002
Typeset in 10.5/12.5 pt Times
John Wiley & Sons Australia, Ltd 2002, 2010
The moral rights of the authors have been asserted.
National Library of Australia
Cataloguing-in-Publication data
Author: Lyn Elms.
Title: Maths quest : Maths A, Year 12 for
Queensland / Lyn Elms, Nick Simpson and
Tony MacPherson.
Edition: 2nd ed.
Publisher: Milton, Qld: John Wiley & Sons Australia, 2010.
ISBN: 978 1 7421 6034 4 (pbk.)
978 1 7421 6172 3 (web.)
Series: Maths Quest series
Notes: Includes index.
Target audience: For secondary students.
Subjects: Mathematics Textbooks.
Other authors/
contributors: Simpson, N. P. (Nicholas Patrick),
1957- MacPherson, Tony.
Dewey Number: 510

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Contents

Introduction viii
About eBookPLUS x
Acknowledgements xi

CHAPTER 1

Simple and compound
interest 1

Introduction 2

Skills check 2
Investigation Investing money 3

Simple interest 5

Exercise 1A 10

Finding

P

,

R

and

T 12

Exercise 1B 15

Investigation Simple interest
spreadsheets 17

Graphing simple interest functions 18

Exercise 1C 21

10 Quick Questions 1 23

Calculation of compound interest 23

Exercise 1D 32

Investigation Compound interest
spreadsheet 34

Graphing compound interest functions 35

Investigation Doubling your money 38
Investigation Determining the interest rate
in compound interest investments 40
Investigation Comparing simple and
compound interest functions using graphics
calculators 41
Investigation Comparing simple and
compound interest functions using a
spreadsheet 44

Exercise 1E 46


Nominal and effective interest rates 47

Exercise 1F 50

Summary 51
Chapter review 52
ICT 54

CHAPTER 2

Appreciation and
depreciation 55

Introduction 56

Skills check 56
Investigation Consumer Price Index 57

Inflation and appreciation 59

Investigation Modelling appreciation with
the aid of a graphics calculator 60

Exercise 2A 62

Modelling depreciation 63

Investigation Depreciation of motor
vehicles 63

Exercise 2B 67

Straight line depreciation 70

Exercise 2C 72

Declining balance or diminishing value
method of depreciation 73

Exercise 2D 75

Investigation Rates of depreciation 77

Depreciation tables 78

Investigation Depreciation table 78
Investigation Comparing straight line
depreciation and diminishing value
depreciation using a spreadsheet 83

Exercise 2E 85

Future and present value of an annuity 87

Investigation Annuity calculator 91
Investigation Future value of $1 92
Investigation Present value table 94

Exercise 2F 96

Investigation A growing investment 98

Summary 99
Chapter review 100
ICT 104

CHAPTER 3

Consumer credit and
investments 105

Skills check 106

Flat rate interest 106

Exercise 3A 109

Investigation Flat rate interest loan
calculator 111

Home loans 112

Investigation Home loan calculator 113

Exercise 3B 115


The cost of a loan 119

Exercise 3C 122

Investigation Researching home loans 124
Investigation Constructing a loan repayment
schedule using a spreadsheet 125
iv

Loan repayments 127

Exercise 3D 129

Investigation Loan repayments 130

Bonds, debentures and term deposits 137

Exercise 3E 140

Bank savings accounts 142

Exercise 3F 146


Investing in real estate 148

Exercise 3G 151

Investigation Rent or buy? 152

Investing in the stock market 153

Exercise 3H 157

Graphing share performance 160

Exercise 3I 162

History of Mathematics The Wall Street
Crash 164
Investigation Stockmarket 165
History of Mathematics The Dow Jones
industrial average 166

Summary 167
Chapter review 169
ICT 174

CHAPTER 4

Exploring and understanding
data 175

Populations and samples 176

Skills check 176
Investigation Australias population and
housing census 177
Investigation Sample size 179
Investigation Random sampling 180
Investigation Generating random integers
using a spreadsheet 182
Investigation ABS interviewer survey 183

Exercise 4A 186

Bias 187

Investigation Bias in statistics 189
Investigation Biased sampling 189

Exercise 4B 190

Investigation Bias 192

Contingency tables 193

Investigation Climatic influences in
Queensland 197
Investigation Contingency tables from
census data 200

Exercise 4C 201


Interpreting the shape of histograms,
stem-and-leaf plots and boxplots 205

Exercise 4D 211

Interpreting data in practical situations 215

Investigation Interpreting histograms 217

Exercise 4E 226

Investigation Year 2018 Commonwealth
Games 231
Investigation Sampling text to predict
population characteristics 233
Investigation Comparing population
characteristics 233
Investigation Modelling Olympic Games
times 235
Investigation Predicting test results 236
Investigation The door game 237

Summary 241
Chapter review 242
ICT 248

CHAPTER 5

Navigation 249

Introduction 250

Skills check 251

Review of Earth geometry 251

Exercise 5A 253

Representing the Earth in two
dimensions 254

Investigation Mercators projection 255

Accurate position description 256

Exercise 5B 257

Investigation Tidal variation 258

The nautical mile and the knot 258

Exercise 5C 262

Investigation Distance to the horizon 264

Using the compass 265

Exercise 5D 268

Compass bearings and reverse bearings 269

Exercise 5E 272

Investigation Reverse bearings 273

Fixing position 273

Exercise 5F 279

Investigation Navigation methods through
the ages 281

Transit fix 281

Exercise 5G 283

Running fix 283

Exercise 5H 284

Doubling the angle on the bow 285

Exercise 5I 288

Investigation Magnetic variation 290
v

Dead reckoning 291

Exercise 5J 292

The lighthouse and navigation 293

Exercise 5K 297

Investigation Obtaining a speed boat
licence 298

Lets go cruising 298

Investigation GPS 299
Investigation Orienteering 299
Investigation Cruising your local area
practical navigation 300

Exercise 5L 302

Air navigation 306

Exercise 5M 308

Investigation Navigation 308

Summary 309
Chapter review 311
ICT 314

CHAPTER 6

Land measurement 315

Introduction 316

Skills check 317

Perimeters and areas of triangles 318

Exercise 6A 321

Perimeters and areas of polygons 322

Exercise 6B 324

Investigation Finding perimeter and area
using pace length 325
Investigation Finding perimeter and area
using your computer 325
Investigation Measuring a perimeter made
simple 325

Surveying on level ground without
obstacles 326

Exercise 6C 329

Investigation Drawing a field map by
survey 331
Investigation Mapping using the GPS 331

Surveying around obstacles 333

Exercise 6D 335

Bearings and reverse bearings 336
Plane table surveying: intersection or
triangulation 336

Exercise 6E 340

Investigation Drawing a scale diagram 341

Plane table surveying: radiation and
traversing 342

Exercise 6F 345


Levelling: vertical measurements in relation
to a datum 347

Exercise 6G 351

Investigation The theodolite 352
Investigation The work of the surveyor 352

Topographic maps 352

Exercise 6H 358

Investigation Local features on topographic
maps 359
Investigation Surveying Then and
now 360

Contour maps 360

Exercise 6I 365

Investigation Local contours 366

Cadastral maps and site plans 367

Exercise 6J 368

Investigation Survey maps: old and
new 369
Investigation Cadastral maps and site
plans 370
Investigation Mapping from air and
space 370

Orienteering 370

Exercise 6K 372

Investigation Planning an orienteering
course 372

Summary 373
Chapter review 374
ICT 378

CHAPTER 7

Linear programming 379

What is linear programming? 380

Skills check 380

Graphs of linear inequations 381

Exercise 7A 386

Solutions of simultaneous linear
equations 387

Exercise 7B 390

Graphs of simultaneous linear
inequations 391

Exercise 7C 396

Graphs of systems of linear inequations 397

Exercise 7D 399

Maximising and minimising linear
functions 401

Exercise 7E 406

Solving linear programming problems 407

Exercise 7F 409

Investigation How many in the research
team? 412
vi

Further applications of linear
programming 413

Exercise 7G 417

Investigation Deck chairs 418

Summary 419
Chapter review 420
ICT 426

CHAPTER 8

Networks 427

Introduction to networks 428
Networks, nodes and arcs 428

Exercise 8A 431

Minimal spanning trees 433

History of Mathematics

John Forbes Nash
(1928

) 435

Exercise 8B 438

Shortest paths 441

Exercise 8C 442


Network flow 445

Investigation The seven bridges of
Knigsberg 447

Exercise 8D 449

Investigation Traffic research 452

Summary 453
Chapter review 454
ICT 456

CHAPTER 9

Critical path analysis and
queuing 457

Skills check 458

Critical path analysis 458

Exercise 9A 465

Critical path analysis with backward
scanning 467

Exercise 9B 470


Queues: one service point 472

Exercise 9C 475


Queues: multiple service
points 479

Investigation Role play 480

Exercise 9D 481

Investigation Call centres 483

Summary 484
Chapter review 485
ICT 490

CHAPTER 10

Probability and the binomial
distribution 491

Introduction 492

Skills check 492

Compound events independent
events 493

Exercise 10A 499

Compound events mutually exclusive
events 501

Exercise 10B 504

Compound events Venn diagrams 507
Exercise 10C 512
The binomial distribution using Pascals
triangle 514
Exercise 10D 522
Investigation Rectangular and binomial
distributions 523
Investigation Pascals triangle 525
History of Mathematics Blaise Pascal
(162362) 526
Binomial probabilities through tables 527
Exercise 10E 529
Investigation The birthday problem 530
The binomial cumulative distribution
tables 532
Summary 534
Chapter review 535
ICT 538
CHAPTER 11
The normal distribution

and games of chance 539
Introduction 540
Skills check 540
Investigation Rolling marbles 541
z-scores 543
Exercise 11A 545
Comparison of scores 547
Exercise 11B 549
Investigation Comparison of subjects 552
Distribution of scores 552
Exercise 11C 557
Investigation Examining a normal
distribution 559
Standard normal tables 559
Exercise 11D 565
Investigation Standardised scores 566
vii
Odds 567
Exercise 11E 570
Two-up 571
Exercise 11F 572
Roulette 573
Exercise 11G 574
Investigation A gambling system where you
always win! 574
Common fallacies in probability 575
Exercise 11H 576
Mathematical expectation 577
Exercise 11I 578
Investigation Keno 580
Investigation Rock, paper, scissors 581
Summary 582
Chapter review 583
ICT 586
Appendix 587
Glossary 622
Answers 627
Index 665
Introduction
Maths Quest Maths A Year 12 for Queensland 2nd edition is one of the
exciting Maths Quest resources specically designed for the Queensland
senior Mathematics syllabuses beginning in 2009. It has been written and
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This resource contains:
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Sets of 10 Quick Questions allow students to quickly review the concepts just
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Investigations, often suggesting the use of technology, provide further dis-
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Each chapter concludes with a summary and chapter review exercise contain-
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A glossary of mathematical terms is provided to assist students understand-
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Technology is fully integrated within the resource. To support the use of
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For those students using the TI-89 Titanium model of graphics calculator, an
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1
syllabus
reference
Strand
Financial mathematics
Core topic
Managing money 2
In this
chapter
1A Simple interest
1B Finding P, R and T
1C Graphing simple interest
functions
1D Calculation of compound
interest
1E Graphing compound
interest functions
1F Nominal and effective
interest rates

Simple and
compound
interest
2

M a t h s Q u e s t M a t h s A Ye a r 1 2 f o r Q u e e n s l a n d

Introduction

If, when you were born, your parents invested $10 000 on your behalf (perhaps to
provide funds for a university education) they would want to know the future value
of this investment on, say, your seventeenth birthday.
A smart investor would consider the interest rates available at the time, and the
terms of the investment. Interest that is calculated more frequently on a xed
investment is of most benet to the investor, as it would result in higher interest
payments. Your $10 000 would return almost $23 000 if interest was calculated
yearly at 5% per annum (p.a.). If interest was calculated daily at 5% p.a., the return
would be almost $23 400. It is obvious that a higher interest rate results in a better
return, all other conditions being equal. The same $10 000 investment with an
interest rate of 10% p.a. would return just over $50 500 with interest calculated
yearly, and almost $55 000 with interest calculated daily. A smart investor would
consider the best combination of these two factors.
The effects of

compounding interest

are quite dramatic. It has been described
by many as the eighth wonder of the world. Baron Rothschild recognised its enor-
mous potential. The remarkable rise of the Rothschild Bank stemmed from that
familys astute management of money. A search of the World Wide Web reveals this
remarkable family that rose from humble beginnings to substantial wealth in the
span of just one generation.
It would be virtually impossible to go through life without either investing or
borrowing money. A common misconception is that it is best to choose the highest
quoted interest rate when investing money and the lowest quoted interest rate when
borrowing money. Those quoted rates can be misleading! Throughout this chapter
we will address issues such as interest rates, and other factors that affect the
amount of interest calculated on an investment or a loan. A graphics calculator can
be used to reduce the work involved in many of the lengthy calculations.

1

Calculate each of the following.

a

5% of $20

b

2.5% of $350

c

3 % of $45

d

% of $100

e

12 % of $32

f

0.1% of $250

2

Express the following as decimals.

a

7

b

7 %

c d

%

e f

0.1%

3

Express each of the following times in years.

a

3 months

b

2 months

c

8 months

d

2 years 1 month

e

4 years 5 months

f

30 months

4


a

50

1

b

300

4.2

c

6000

d

1.05

3

e

1.004

20

f

(1

+

)

10
1
3
---
1
4
---
1
2
---
1
4
---
1
4
---
1
5
---
1
5
---
1
8
---
1
2
---
5
12
------
1
4
---
2
3
---
6.5
100
---------
C h a p t e r 1 S i m p l e a n d c o m p o u n d i n t e r e s t

3

Investing money

The aim of this investigation is to explore a relationship between the amount of
money invested and the interest earned, considering the length of time of the
investment and the interest rate applied to the money.

Task 1

Consider making an investment of $10 000 in a fund where the interest rate paid on
the money is quoted as 4.5% p.a. This means that, if the money was invested for a
whole year, the interest earned would amount to 4.5% of $10 000; that is, $450. If
the money was invested for only half a year (6 months), the interest earned would
be of 4.5% of $10 000 ($225). What would the interest be if the money was
invested for only 1 month (one twelfth of a year), any fraction of a year or any
number of years?
Copy and complete the following table showing the interest earned on an
investment of $10 000 at 4.5% p.a. over a variable period of time.
What relationship appears to exist between the amount of interest earned and the
length of time of the investment?

(

Continued

)
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
1
2
---
Time Interest calculation Interest
1 month of 4.5% of $10 000 $37.50
2 months of 4.5% of $10 000
3 months
4 months
5 months
6 months
7 months
8 months
9 months
10 months
11 months of 4.5% of $10 000
12 months (1 year) 4.5% of $10 000 $450
2 years Twice 4.5% of $10 000
3 years 3 times 4.5% of $10 000
1
12
------
2
12
------
11
12
------
4


Task 2

Take again our investment of
$10 000 and consider the effect
a changing interest rate has on
the amount of interest earned.
We saw previously that an
interest rate of 4.5% p.a.
earned $450 each year on the
$10 000 invested. If the
interest rate fell to 4.4% p.a.,
the yearly interest earned
would be 4.4% of $10 000
($440). Clearly, the interest
rate affects the amount of
interest earned.
Copy and complete the
table at right showing the
interest earned on an
investment of $10 000 over a
xed period of a year at a
variable interest rate.
What relationship appears to exist between the amount of interest earned and the
yearly interest rate?

Task 3

What would be the effect of
changing the amount of
money invested? Clearly, if
we invested $20 000, the
money earned should be twice
what $10 000 would earn. At
an interest rate of 4.5% p.a.
the investment should earn
4.5% of $20 000 in a year
($900).
Copy and complete the table showing the interest earned on a variable
investment at a xed interest rate of 4.5% p.a. for a period of a year.
How does the value of the investment affect the interest earned?

Conclusion

We have considered separately three variables (time, interest rate and investment)
and the effect each has on the amount of interest earned on an investment. Write a
relationship in words showing how the interest earned depends on these three
variables.
In the next section we will consider this further by developing this relationship
as a mathematical equation.
Interest rate
(p.a.) %
Interest
calculation Interest
4.5 4.5% of $10 000 $450
4.4 4.4% of $10 000
4.3
4.2
4.1
4
3.9
3.5
3.25
3
2.5
2.125
2
Investment
($)
Interest
calculation Interest
10 000 4.5% of $10 000 $450
20 000 4.5% of $20 000
1000
100
50
10
C h a p t e r 1 S i m p l e a n d c o m p o u n d i n t e r e s t

5

Simple interest

When you lend money for a certain period of time (a

term deposit

) to a bank, building
society or other nancial institution, you expect to be rewarded by eventually getting
your money back, plus an extra amount commonly known as

interest

(

I

).
Similarly, if you borrow money from any institution by taking out a loan or mortgage,
you must pay back the original sum plus interest.
The following examples deal with

simple interest

, that is, interest which is paid only
on the original sum of money invested or borrowed.
We saw in the previous investigation that the interest earned from an investment
depends on the

rate of interest

, the period or

term

for which it is invested and the amount
or

principal

invested. This relationship can be expressed formally by a mathematical
equation.

The formula used to calculate simple interest is given by:
where:

I

=

interest, $

P

=

principal, $ that is, the sum of money borrowed or invested

R

=

rate of interest p.a., % that is, per annum, (per year)

T

=

term of interest, years that is, the period of time for which the sum of
money is to be borrowed or invested.

When we invest money, at the end of the time period we collect our investment (prin-
cipal) and also the interest it has earned.
The sum of the principal,

P

, and the interest,

I

, is called the

total amount

and is
denoted by the symbol

A

.

The formula used to calculate the total amount is given by:

A

=

P

+

I

where:

A

=

total amount at the end of the term, $

P

=

principal, $

I

=

simple interest, $.
I
PRT
100
------------ =
Calculate the amount of simple interest, I, earned and the total amount, A, at the end of
the term, if:
a $12 000 is invested for 5 years at 9.5% p.a.
b $2500 is invested for 3 months at 4.5% p.a.
Continued over page
THINK WRITE
a Write down the formula for simple
interest.
a
Write down the known values of the
variables.
P = $12 000 R = 9.5
T = 5 years
1 I
PRT
100
----------- =
2
1
WORKEDExample
6


A graphics calculator can be used to solve Worked example 1.

For the Casio

fx

-9860G AU

The Casio graphics calculator displays a Financial Calculations facility in its menu.
This is accessed by pressing on the TVM

screen on the MAIN MENU. Simple
interest and compound interest calculations can be performed here using built-in for-
mulas. The values of known variables can be entered and the value of the unknown
variable/s can be displayed.
THINK WRITE
Substitute the values into the given formula.
Evaluate. =
= 5700
Answer the question and include the
appropriate unit.
The amount of interest earned is
$5700.
Write down the formula for the total
amount.
A = P + I
Substitute the values for P and I. = 12 000 + 5700
Evaluate. = 17 700
appropriate unit.
The total amount at the end of the term
is $17 700.
b Write down the formula for simple interest. b
variables.
Note: T must be expressed in years, so
divide 3 months by 12 months.
P = $2500 R = 4.5
T = 3 months
= or 0.25 years
Evaluate and round off the answer to
2 decimal places.
=
= 28.13
appropriate unit.
The amount of interest earned is
$28.13.
Write down the formula for the total
amount.
A = P + I
Substitute the values for P and I. = 2500 + 28.13
Evaluate. = 2528.13
appropriate unit.
The total amount at the end of the term
is $2528.13.
3
I
12 000 9.5 5
100
--------------------------------------- =
3 4
570 000
100
-------------------
5
6
7
8
9
1 I
PRT
100
----------- =
2
3
12
------
3
I
2500 4.5 0.25
100
------------------------------------------ =
4
2812.5
100
----------------
5
6
7
8
9
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating simple interest
and amount
EXE
C h a p t e r 1 S i m p l e a n d c o m p o u n d i n t e r e s t 7
1. Enter the nancial calculations section from the menu.
2. Enter the Simple Interest section by pressing the function key (SMPL).
3. The variables displayed are n (number of interest
periods in days note that the time is expressed in days
here rather than years), I% (annual interest rate) and PV
(present value or principal). Enter the following values
for each of the variables, pressing after each entry.
n = 5 365 (number of days of the investment)
I% = 9.5 (interest rate is 9.5% p.a.)
PV = 12 000 (principal is $12 000)
4. Pressing (SI) displays the simple interest for
the period. This key reveals the simple interest for the
period amounts to $5700 (as in our worked example).
5. Press (REPT) to return to the variables. Then
press the (SFV) function key which displays the
simple interest future value/principal plus interest.
The key indicates that the amount at the end of the term
is $17 700 (in agreement with our worked example).
Verify the answers to part b of Worked example 1 using your calculator.
Note: This calculator uses positive values to represent receipts of money, and negative
values to represent payments. For our purposes, this is merely a convention and may be
ignored.
For the TI-Nspire CAS
1. Press:
HOME c
1: Add Calculator 1
MENU b
3: Algebra 3
1: Solve 1.
Complete the entry line as:
.
Then press ENTER .
2. A = P + I
= 12 000 + 5700
= $17 700
Verify the answers in part b of Worked example 1 using your calculator.
F1
EXE
F1
F1
F2
solve si
12 000 9.5 5
100
---------------------------------------- si , =

After comparing investment options from a variety of institutions,
Lynda and Jason decided to invest their $18 000 in State Government
bonds at 7.75% p.a. The investment is for 5 years and the interest is
paid semi-annually (every six months). Calculate how much interest:
a they receive in every payment
b will be received in total.
2
WORKEDExample
Continued over page
8 M a t h s Q u e s t M a t h s A Ye a r 1 2 f o r Q u e e n s l a n d
The following instructions can be used for Worked example 2.
For the Casio fx-9860G AU
Use the Financial calculations facility as shown in the steps below.
1. Enter the Simple Interest section by pressing (SMPL).
Graphics Calculator
Graphics Calculator
tip!
tip! Simple interest
THINK WRITE
a Write down the formula for simple interest. a
variables.
Note: T must be expressed in years so divide
6 months by 12 months.
P = $18 000 R = 7.75
T = 6 months
= or 0.5 years
Substitute the values into the given formula. I =
Evaluate. =
= 697.5
appropriate unit.
Lynda and Jason receive $697.50 in
interest every 6 months.
b Method 1
Write down the formula for simple interest. b
variables.
P = $18 000 R = 7.75
T = 5 years
Substitute the values into the given formula. I =
Evaluate. =
= 6975
appropriate unit.
Lynda and Jason will receive a total
of $6975 in interest.
b Alternative method
Multiply the interest received in each
6 month period by the number of 6 month
periods in 5 years; that is, multiply $697.50
by 10.
Interest obtained each
6 months = $697.50
Number of payments to be
received = 10
Total interest received
= $697.50 10
= $6975
Answer the question. Lynda and Jason will receive a total
of $6975 in interest.
1
I
PRT
100
----------- =
2
6
12
------
3
18 000 7.75 0.5
100
----------------------------------------------
4
69 750
100
----------------
5
1
I
PRT
100
----------- =
2
3
18 000 7.75 5
100
------------------------------------------
4
697 500
100
-------------------
5
1
2
F1
2. Enter the following values for the variables:
n = 365 2 (The time is the number of days in
half a year.)
I% = 7.75 (The interest rate is 7.75% p.a.)
PV = 18 000 (The principal is $18 000.)
3. Pressing the (SI) function key displays the simple
interest for six months as $697.50 (the answer to part a).
4. To obtain the answer to part b, repeat the calculation for
part a, changing the value for n to 5 365 (the number of
days in 5 years). You should conrm the answer of $6975.
Using the TI-Nspire CAS
1. On a Calculator page, press:
MENU b
3: Algebra 3
1: Solve 1.
solve p = 18 000 and r = 7.75 and t = 0.5.
Then press ENTER .
2. To obtain the answer to part b, use the NavPad
to highlight the previous equation and paste it
into the entry line. Use the NavPad to edit
the equation as shown.
solve p = 18 000 and r = 7.75
and t = 5.
Then press ENTER .
F1
si
p r t
100
-------------------- si , =

si
p r t
100
-------------------- si , =

1. Simple interest is given by .
2. The total amount is given by A = P + I.
3. When calculating simple interest, the interest earned is the same for each time
period.
4. I = interest ($)
P = principal ($)
R = rate of interest (% p.a.)
T = time (years)
A = amount ($)
5. A graphics calculator can also be used to shorten simple interest calculations.
I
PRT
100
----------- =
remember
Simple interest
The use of a graphics calculator, if available, is encouraged.
1 Find the interest paid on the following deposits for the periods and at the rates given.
2 Find the interest charged or earned on the following loans and investments:
a $690 loaned at 12% p.a. simple interest for 15 months
b $7500 invested for 3 years at 12% per year simple interest
c $25 000 borrowed for 13 weeks at 5.2% p.a. simple interest
d $250 invested at 21% p.a. for 2 years.
3 Find the amount to which each investment has grown after the investment periods
shown in the following examples:
a $300 invested at 10% p.a. simple interest for 24 months
b $750 invested for 3 years at 12% p.a. simple interest
c $20 000 invested for 3 years and 6 months at 11% p.a. simple interest
d $15 invested at 6 % p.a. for 2 years and 8 months
e $10.20 invested at 8 % p.a. for 208 weeks.
4
If John had $63 in his bank account and earned 9% p.a. over 3 years, the simple
interest earned would be:
A $5.67 B $17.01 C $22.68 D $80.01 E $1701
5
If $720 was invested in a xed deposit account earning 6 % p.a. for 5 years, the
interest earned at the end of 5 years would be:
A $23.40 B $216.00 C $234.00 D $954.00 E $23 400.00
6
A 4-year bond paid 7.6% p.a. simple interest. If Sonja bought a bond worth $550, the
interest she earned would be:
A $16.72 B $167.20 C $717.20 D $1672 E $16 720
7
Bodgee Bank advertised a special offer. If a person invests $150 for 2 years, the bank
will pay 12% p.a. simple interest on the money. At the expiry date, the investor would
have earned:
A $36 B $48 C $186 D $300 E $3600
a $680 for 4 years at 5% p.a. b $210 for 3 years at 9% p.a.
c $415 for 5 years at 7% p.a. d $460 at 12% p.a. for 2 years
e $1020 at 12 % p.a. for 2 years f $713 at 6 % p.a. for 7 years
g $821 at 7 % p.a. for 3 years h 11.25% p.a. on $65 for 6 years
i 6.15% p.a. on $21.25 for 9 years j 9.21% p.a. on $623.46 for 4 years
k 13 % p.a. on $791.35 for 5 years
1A
WORKED
Example
1
1
2
---
3
4
---
1
4
---
3
4
---
eBookplus eBookplus
Digital docs:
SkillSHEET 1.1
Substitution into formulas
SkillSHEET 1.2
Conversion of units of
time
1
2
---
WORKED
Example
1
3
4
---
1
2
---
multiple choice
multiple choice
1
2
---
multiple choice
multiple choice
8
Maclay invested $160 in a bank for 6 years earning 8% simple interest each year. At
the end of the 6 years, he will receive in total:
A $76.80 B $236.80 C $768 D $928 E $2368
9
Simple interest was calculated on a term deposit of 4 years at 3 % per year. When
Ashleigh calculated the total return on her investment of $63.50, it was:
A $7.75 B $8.89 C $71.24 D $72.39 E $88.90
10
Joanne asked Sally for a loan of $125 to buy new shoes. Sally agreed on the condition
that Joanne paid it back in two years at 3% p.a. simple interest. The amount Joanne
paid Sally at the end of the two years was:
A $7.50 B $125 C $130.50 D $132.50 E $200
11
Betty invests $550 in an investment account earning 4% p.a. simple interest over
6 years. Ron puts his $550 in a similar investment earning 5% p.a. simple interest for
5 years. The difference in their earnings at the end of the investment period is:
A $0 B $5.50 C $7.50 D $55 E $550
12
Two banks pay simple interest on short-term deposits. Hales Bank pays 8% p.a. over
5 years and Countrybank pays 10% p.a. for 4 years. The difference between the two
banks nal payout gure if $2000 was invested in each account is:
A $0 B $150 C $800 D $1200 E $2800
13 Robyn wishes to purchase a new dress worth $350 to wear to the school formal. If she
borrows the total amount from the bank and pays it off over 3 years at 11% p.a.
simple interest, what is the total amount Robyn must pay back to the bank?
14 The Sharks Building Society offers loans at 8 % p.a. simple interest for a period of
18 months. Andrew borrows $200 from Sharks to buy Monique an engagement ring.
Calculate the amount of interest Andrew is to pay over the 18 months.
15 Silvio invested the $1500 he won in Lotto with an insurance company bond that pays
12 % p.a. simple interest provided he keeps the bond for 5 years. What is Silvios
total return from the bond at the end of the 5 years?
16 The insurance company that Silvio used in the previous question allows people to
withdraw part or all the money early. If this happens the insurance company will only
pay 6 % p.a. simple interest on the amount which is withdrawn over the period it was
invested in the bond. The part which is left in the bond receives the original agreed
interest. Silvio needed $700 for repairs to his car 2 years after he had invested the
money but left the rest in for the full 5 years. How much interest did he earn from the
bond in total?
multiple choice
multiple choice
1
2
---
multiple choice
multiple choice
multiple choice
1
2
---
1
4
---
3
4
---
17 Jill and John decide to borrow money to
improve their yacht, but cannot agree
which loan is the better value. They
would like to borrow $2550. Jill goes to
the Big-4 Bank and nds that they will
lend her the money at 11 % p.a. simple
interest for 3 years. John nds that the
Friendly Building Society will lend the
$2550 to them at 1% per month simple
interest for the 3 years.
a Which institution offers the better
rate over the 3 years?
b Explain why.
18 Sue and Harry invested $14 500 in State
Government bonds at 8.65% p.a. The
investment is for 10 years and the
interest is paid semi-annually (that is,
every six months). Calculate how much
interest:
a they receive every payment
b will be received in total.
19 Anna invested $85 000 in Ski International debentures. She earns 7.25% p.a. which is
paid quarterly for one year.
a Calculate, how much interest:
i she receives quarterly ii will be received in total, over a year.
b Would Anna receive the same amount of interest over a 3-year period if it were
paid annually rather than quarterly?
20 Mrs Williams invested $60 000 in government bonds at 7.49% p.a. with interest paid
semi-annually (that is, every 6 months).
a How much interest is she paid each 6 months?
b How much interest is she paid over 3 years?
c How long would the money need to be invested to earn a total of $33705 in interest?
Finding P, R and T
In many cases we may wish to nd the principal, interest rate or period of a loan. In
these situations it is necessary to rearrange or transpose the simple interest formula
after (or before) substitution, as the following example illustrates.
1
3
---
WORKED
Example
2
1
2
---
A bank offers 9% p.a. simple interest on an investment. At the end of 4 years the interest
earned was $215. How much was invested?
THINK WRITE
Write the simple interest formula. I =
List the values of I, R and T. I = $215 R = 9 T = 4 years
1
PRT
100
-----------
2
3
WORKEDExample
Transposed simple interest formula
It may be easier to use the transposed formula when nding P, R or T.
Simple interest formula transposes:
to nd the principal
to nd the interest rate
to nd the period of the loan or investment
THINK WRITE
Substitute into the formula. I =
215 =
Make P the subject by multiplying both sides
by 100 and dividing both sides by (9 4).
P =
Use a calculator to evaluate. P = 597.22
Write your answer. The amount invested was $597.22.
3
P R T
100
-----------------------
P 9 4
100
----------------------
4
215 100
9 4
------------------------
5
6
P
100 I
R T
----------------- =
R
100 I
P T
----------------- =
T
100 I
P R
----------------- =
When $720 is invested for 36 months it earns $205.20 simple interest. Find the yearly
interest rate.
Continued over page
THINK WRITE/DISPLAY
Write the simple interest formula. R =
List the values of P, I and T.
T must be expressed in years.
P = $720, I = $205.20, T = 36 months (3 years)
Substitute into the formula. R =
Evaluate on a calculator. Remember to
bracket (720 3).
Write your answer. The interest rate offered was 9.5% per annum.
1
100 I
P T
-----------------
2
3
100 205.20
720 3
-------------------------------
4
5
4
WORKEDExample
THINK WRITE/DISPLAY
On a Calculator page, press:
MENU b
3: Algebra 3
1: Solve 1.
solve (si = , r) si = 205.2 and
p = 720 and t = .
Then press ENTER .
Write your answer.
Solve I = , for R,
given I = 205.20, P = 720 and T = = 3.
The interest rate offered was 9.5% per annum.
1
p r t
100
-------------------- |
36
12
------
2 P R T
100
-----------------------
36
12
------
An amount of $255 was invested at 8.5% p.a. How long will it take, to the nearest year, to
earn $86.70 in interest?
THINK WRITE/DISPLAY
Write the simple interest formula. T =
Substitute the values of P, I and R. P = $255, I = $86.70, R = 8.5
Substitute into the formula. T =
Evaluate on a calculator. Remember to
bracket (255 8.5).
Write your answer. The period of the investment was 4 years.
On a Calculator page, press:
MENU b
3: Algebra 3
1: Solve 1.
solve(si = , t) si = 86.7 and
p = 255 and r = 8.5.
Then press ENTER .
1
100 I
P R
-----------------
2
3
100 86.70
255 8.5
----------------------------
4
5
1
p r t
100
-------------------- |
5
WORKEDExample
Finding P, R and T
1 For each of the following, nd the principal invested.
a Simple interest of 5% p.a., earning $307 interest over 2 years
b Simple interest of 7% p.a., earning $1232 interest over 4 years
c Simple interest of 8% p.a., earning $651 interest over 18 months
d Simple interest of 5 % p.a., earning $78 interest over 6 years
e Simple interest of 6.25% p.a., earning $625 interest over 4 years
2 For each of the following, nd the interest rate offered. Express rates in % per annum.
a Loan of $10 000, with a $2000 interest charge, for 2 years
b Investment of $5000, earning $1250 interest for 4 years
c Loan of $150, with a $20 interest charge, for 2 months
d Investment of $1400 earning $178.50 interest for 6 years
e Investment of $6250 earning $525 interest for 2 years
3 For each of the following, nd the period of time (to the nearest month) for which the
principal was invested or borrowed.
a Investment of $1000 at simple interest of 5% p.a. earning $50
b Loan of $6000 at simple interest of 7% p.a. with an interest charge of $630
c Loan of $100 at simple interest of 24% p.a. with an interest charge of $6
d Investment of $23 000 at simple interest of 6 % p.a. earning $10 465
e Loan of $1 500 000 at simple interest of 1.5% p.a. with an interest charge of $1875
4 Lennie Cavan earned $576 in interest when she invested in a fund paying 9.5% p.a.
simple interest for 4 years. How much did Lennie invest originally?

THINK WRITE/DISPLAY
Write your answer.
Solve I = , for T,
given I = 86.70, P = 255 and R = 8.5.
The period of the investment was 4 years.
2 P R T
100
-----------------------
When nding P, R or T:
1. substitute the given values into the formula and then rearrange to isolate the
pronumeral, or
2. transpose the simple interest formula
(a) to nd the principal
(b) to nd the interest rate
(c) to nd the period of the loan or investment
and substitute the given values into the transposed formula.
P
100 I
R T
----------------- =
R
100 I
P T
----------------- =
T
100 I
P R
----------------- =
remember
1B
WORKED
Example
3
eBookplus eBookplus
Digital doc:
SkillSHEET 1.3
Substitution into the
simple interest
formula
1
2
---
WORKED
Example
4
1
2
---
WORKED
Example
5
1
2
---
5 Lennies sister Lisa also earned $576 interest at 9% p.a. simple interest, but she only
had to invest it for 3 years. What was Lisas initial investment?
6 Jack Kahn put some money away for 5 years in a bank account which paid 3 % p.a.
interest. He found from his bank statement that he had earned $66. How much did
Jack invest?
7 James needed to earn $225. He invested $2500 in an account earning simple interest
at a rate of 4.5% p.a. How many months will it take James to achieve his aim?
8 Carol has $3000 to invest. Her aim is to earn $450 in interest at a rate of 5% p.a. Over
what term would she invest?
9
Peter borrowed $5000 and intended to pay it back in 3 years. The terms of the loan
indicated Peter was to pay 9 % p.a. interest. The interest Peter paid on the loan was:
A $121.88 B $446.25 C $1462.50 D $3537.50 E $146 250
10
Joannes accountant found that
for the past 2 years she had
earned a total of $420 interest in
an account paying 6% p.a.
simple interest. When she cal-
culated how much she invested
the amount was:
A $50.40
B $350
C $3500
D $5040
E $7000
11
A loan of $1000 is taken over 5 years. The total amount repaid for this loan is $1800.
The simple interest rate per year on this loan is closest to:
A 5% B 8% C 9% D 16% E 36%
12
Jarrod decides to buy a motorbike at no deposit and no repayments for 3 years. He
takes out a loan of $12 800 and is charged at 7.5% p.a. simple interest over the
3 years. The lump sum Jarrod has to pay in 3 years time is:
A $960 B $2880 C $9920 D $13 760 E $15 680
13
Chris and Jane each take out loans of $4500 and are offered 6 % p.a. simple interest
over a 3-year period. Chriss interest is paid monthly whereas Janes is paid yearly.
The difference in the total amount of interest each person pays after the 3 years is:
A none B $843.75 C $877.50 D $9652.50 E $10 530
3
4
---
multiple choice
3
4
---
multiple choice
multiple choice
multiple choice
multiple choice
1
4
---
14 Alisha has $8900 that she is able to invest. She has a goal of earning at least $1100 in
2 years or less. Do any of the following investments satisfy Alishas goal?
a 10% p.a. for 15 months
b 4 % p.a. earning $1200
c After 100 weeks a nal payout of $10 500
d After 2 years at 7.2% p.a.
Simple interest spreadsheets
Throughout this chapter we will use some spreadsheets that allow us to track the
growing value of an investment over time.
1 Use the Simple interest weblink in your eBookPLUS and download the
spreadsheet.
2 Sheet 1, titled Simple Interest Spreadsheet, models an investment of $10 000
at 5% p.a.
3 Use the graphing function on your spreadsheet to draw a line graph for the amount
of interest earned each year and the value of the investment after each year.
4 Change the amount of the principal and the interest rate and note the change in
the gures displayed and the chart.
5 Use your cursor to move around the cells under the headings Interest Earned
and Investment Value. Note the formulas used in the calculations.
6 Save the spreadsheet as Simple Interest.
7 Print out the spreadsheet.
8 Close the spreadsheet. Attempt to reproduce it. Remember to use the copy
facility to copy formulas down columns.
1
4
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eBookplus eBookplus
Digital doc:
Spreadsheet
205 Simple interest
Graphing simple interest functions
Suppose that we invest $10 000 at 5% p.a. simple interest. The table below shows the
amount of interest that we will receive over various lengths of time.
The amount of interest earned can be graphed by the
linear function at right.
Note that the gradient of this graph is 500,
which is the amount of one years interest, or 5% of
the principal. This means that for every 1 unit increase
on the x-axis (1 year in time) the y-axis (Interest)
increases by 500 units ($500).
We are able to compare the interest that is earned by an investment at varying interest
rates by graphing the interest earned at varying rates on the one set of axes.
No. of years 1 2 3 4 5
Interest $500 $1000 $1500 $2000 $2500
0
1 2 3 4 5
1000
I
n
t
e
r
e
s
t

(
$
)
Years
2000
3000
0
Leilay invests savings of $6000 at 4% p.a.
a Complete the table below to calculate the interest that will
have been earned over 5 years.
b Graph the interest earned against the number of years the money is invested.
Interest
THINK WRITE
a Use the simple interest formula to
calculate the interest earned on $6000
at 4% p.a. for 1, 2, 3, 4 and 5 years.
a
b Draw the graph with Years on the
horizontal axis and Interest on the
vertical axis.
b
Interest $240 $480 $720 $960 $1200
0
1 2 3 4 5
500
I
n
t
e
r
e
s
t

(
$
)
Years
1000
1500
0
6
WORKEDExample
A graphics calculator greatly shortens the work in calculations involving formulas. Graphs
can also be produced displaying the results of tables of values produced from the formulas.
The previous worked example can be solved quickly using these capabilities. A variety
of approaches can be used. One solution is shown in the next worked example.
Kylie has $12 000 to invest. Three different banks offer interest rates of 4%, 5% and 6%.
a Complete the table below to show the interest that she could earn over 5 years.
b Show this information in graph form.
Interest (4%)
Interest (5%)
Interest (6%)
THINK WRITE
a Use the simple interest formula to
calculate the interest earned on $12 000
a
Use the simple interest formula to
Use the simple interest formula to
b Draw a line graph for each investment. b
1
2
Interest (4%) $480 $960 $1440 $1920 $2400
Interest (5%) $600 $1200 $1800 $2400 $3000
Interest (6%) $720 $1440 $2160 $2880 $3600
3
0
1 0 2 3 4 5
1000
I
n
t
e
r
e
s
t

(
$
)
Years
2000
3000
4000
Interest (6%)
Interest (5%)
Interest (4%)
7
WORKEDExample
Use a graphics calculator to answer the question in Worked example 7.
THINK WRITE/DISPLAY
a To create a table, press:

7: TABLE.
Enter the formulas as:
Y1 = 12 000 4 X 100
Y2 = 12 000 5 X 100
Y3 = 12 000 6 X 100.
Press after each line.
a
Continued over page
1
MENU
EXE
8
WORKEDExample
THINK WRITE/DISPLAY
To set the range, press (SET).
Enter the values as shown.
To see the table of values, press:
(TABL).
b To adjust the window settings, press:
(V-WIN).
Enter the values as shown and then
press .
b
To graph the table, press
(G-CON).
To trace points on the graphs, press:
(TRCE).
a To enter the data in a List &
Spreadsheets screen Press:
HOME c
3: Lists & Spreadsheets 3.
Using the NavPad ` to highlight
the cell, label Column A as year.
Enter the values 1 to 5 in this
column.
Label Column B as int4. In the
header cell below, complete the
entry line as:
= 12 000 4 year 100.
Then press ENTER .
a
Label Column C as int5. In the
entry line as:
= 12 000 5 year 100.
Then press ENTER .
Label Column D as int6. In the
entry line as:
= 12 000 6 year 100.
Then press ENTER .
2
F5
3
EXE
F6
1
SHIFT
F3
EXE
2
F5
SHIFT
F1
1
2
Graphing simple interest
functions
1 An amount of $8000 is invested at 5% p.a.
a Copy and complete the table below to calculate the interest over 5 years.
b Draw a graph of the interest earned against the length of the investment.
2 Savings of $20 000 are to be invested at 8% p.a.
a Copy and complete the table below to calculate the interest for various lengths of
time.
c What is the gradient of the linear graph drawn?
d Use your graph to nd the amount of interest that would have been earned after
10 years.
Interest
Interest
THINK WRITE/DISPLAY
b To show this information in graph form,
press:
HOME c
2: Graphs & Geometry 2.
For appropriate window settings for the
graph, press:
MENU b
4: Window 4
1: Window Settings 1.
Adjust the window settings as shown,
pressing Tab e to move between elds.
Press ENTER .
b
Complete the entry lines as:
f1(x) = 12 000 4 x 1000 x 5
f2(x) = 12 000 5 x 1000 x 5
f3(x) = 12 000 6 x 1000 x 5.
Press ENTER after each line.
Note: To hide the function entry line press:
Ctrl /
G G.
1
2
1C
WORKED
Example
6, 8
3 Draw a graph to represent the interest earned by each of the following investments over
5 years.
a $15 000 at 7% p.a.
b $2000 at 10% p.a.
c $8600 at 7.5% p.a.
d $50 000 at 8.2% p.a.
4 A graph is drawn to show the interest earned on $6000 at 4.8% p.a. for various lengths
of time. Without drawing the graph, state the gradient.
5 Darren invests $3200 at 2.5% p.a. for 5 years.
a Graph the amount of interest that Darren would
have earned at the end of each year for the
5 years.
b Graph the total value of Darrens investment at the
end of each year.
6 Julian has $25 000 to invest at 5% p.a., 6% p.a.
or 8% p.a.
a Complete the table below to show the interest
that he would earn over 5 years.
7 Mark has $5500 to invest at 3% p.a., 3.5% p.a. or 3.75% p.a.
a Complete the table below to show the interest that he would earn over various
lengths of time.
8 Draw a graph to show the interest earned on an investment of $12 500 at 4.5% p.a.,
5% p.a. and 5.2% p.a. Use the graph to nd:
a the amount of interest earned by each investment after 8 years
b how much more the investment at 5.2% p.a. is worth after 10 years than the
4.5% p.a. investment.
9 Three banks offer $4000 debentures at rates of 5.2% p.a., 5.8% p.a. and 6.2% p.a. Draw
a graph of the value of the debentures at maturity against the number of years of the
debenture.
Interest (5%)
Interest (6%)
Interest (8%)
Interest (3%)
Interest (3.5%)
Interest (3.75%)
WORKED
Example
7, 8
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WorkSHEET 1.1
Find the simple interest on each of the following investments.
1 $4000 at 5% p.a. for 4 years
2 $9000 at 7% p.a. for 2 years
3 $15 000 at 6% p.a. for 3 years
4 $950 at 0.1% p.a. for 2 years
5 $40 000 at 3.5% p.a. for 5 years
6 $1200 at 4.6% p.a. for 2 years
7 $5745 at 3 % p.a. for 1 year
8 $32 500 at 4.1% p.a. for 18 months
9 $532 at 0.2% p.a. for 6 months
10 $3330 at 6.95% p.a. for 9 months
Calculation of compound interest
The effect of compounding interest (which oil
billionaire J. P. Getty called the eighth wonder
in the world and theoretical physicist Albert
Einstein [at right] described as the driving
force of the Universe) is a secret of nancial
wealth creation.
As mentioned previously, when we are
dealing with simple interest, the interest is the
same for each time period.
In calculating compound interest, the
principal on which interest is calculated is
increased by adding (or reinvesting) the
interest at the end of each interest period
during the term. Therefore, interest is
calculated on the principal as well as the
interest over each time period. This is the
process by which our savings accounts earn
interest. Let us consider an amount of $1000, to
be invested for a period of 5 years at an interest
rate of 10% p.a. We will compare the interest
earned using simple interest and compound
interest.
1
1
2
---
3
4
---
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Interactivity:
Compound interest
int-0193
This table has illustrated how, as the principal for compound interest increases
periodically, that is, P = $1000, $1100, $1210, $1331, $1464.10 . . ., so does the
interest, that is, I = $100, $110, $121, $133.10, $146.41 . . ., while both the principal
for simple interest and the interest earned remain constant, that is, P = $1000 and
I = $100. The difference of $110.51 between the compound interest and simple interest
earned in a 5-year period represents the interest earned on added interest.
If we were to place the set of data obtained in two separate tables and represent each
set graphically as the total amount of the investment, A, versus the year of the
investment, T we would nd that the simple interest investment grows at a constant
rate while the compound interest investment grows exponentially.
Simple interest Compound interest
Initial principal, P = $1000 Initial principal, P = $1000
Rate of interest, R = 10% Rate of interest, R = 10%
Interest for Year 1
10% of $1000 I
1
= $100
Interest for Year 1
10% of $1000 I
1
= $100
Principal at the beginning of Year 2
P
2
= $1000
P
2
= $1000 + $100
= $1100
Interest for Year 2
10% of $1000 I
2
= $100
Interest for Year 2
10% of $1100 I
2
= $110
P
3
= $1000
P
3
= $1100 + $110
= $1210
Interest for Year 3
10% of $1000 I
3
= $100
Interest for Year 3
10% of $1210 I
3
= $121
P
4
= $1000
P
4
= $1210 + $121
= $1331
Interest for Year 4
10% of $1000 I
4
= $100
Interest for Year 4
10% of $1331 I
4
= $133.10
P
5
= $1000
P
5
= $1331 + $133.10
= $1464.10
Interest for Year 5
10% of $1000 I
5
= $100
Interest for Year 5
10% of $1464.10 I
5
= $146.41
The simple interest earned over a
5-year period is $500.
The compound interest earned over a
5-year period is $610.51.
1. The simple interest
investment is
represented by a straight
line as shown at right.
2. The compound interest
investment is represented
by a curve as shown
at right.
The above data may be entered into a graphics calculator and used to plot each of the
graphs.
1. To enter the data, press:

2: STAT.
Enter the time in List 1, the simple interest investment
amounts in List 2, and the compound interest investment
amounts in List 3. Press after each entry.
2. To set the appropriate window settings, press:
(V-WIN).
Enter the values as shown and then press .
Note: The y-scale of 100 is missing from the bottom of
the screen.
3. To set the type of graph, press:
(GRPH)
(SET).
Set the StatGraph1 elds as shown.
T A
0 1000
1 1100
2 1200
3 1300
4 1400
5 1500
A
T
1500
1400
1300
1200
1100
1000
1 0 2 3 4 5
T A
0 1000
1 1100
2 1210
3 1331
4 1464.10
5 1610.51
A
T
1610.51
1464.10
1331
1210
1100
1000
1 0 2 3 4 5
Graphics Calculator
Graphics Calculator
tip!
tip!
Comparing investments
MENU
EXE
SHIFT
F3
EXE
F1
F6
4. Set StatGraph2 with XList: List1 and YList: List3.
Press when completed.
5. To select the graph, press (SEL). Turn on
Statgraph1 and StatGraph2. Ensure that Statgraph3
is turned off.
6. To draw the two graphs, press (DRAW).
To compare values of the investments, press:

(TRCE).
1. To enter the data into a List & Spreadsheets page, press:
HOME c
Label column A as t, column B as a1 and column C
as a2. Enter the data in the appropriate columns.
2. To draw scatterplots of this data, press:
HOME c
2: Graphs & Geometry 2
MENU b
3: Graph Type 3
4: Scatter Plot 4.
Press Click x and select t as the x-variable, then press
ENTER . Use the NavPad to move into the next
eld, press Click x and select a1 as the y-variable,
then press ENTER .
3. To change the scale to t the data, press:
MENU b
4: Window 4
9: Zoom Data 9.
4. To move cursor back into function entry line press,
Tab e. Then press Click x and select t as the
x-variable, press ENTER . Use the NavPad
to move into the next eld, press Click x and select
a2 as the y-variable, press ENTER .
The two scatterplots will appear on the same set of axes.
To hide the entry line, press:
Ctrl /
G G.
EXE
F4
F6
SHIFT
F1
Formula for compound interest
We will now derive a mathematical relationship for compound interest. As seen from
the previous example, the initial amount:
A
0
= P
= $10 000
After 1 year A
1
= 10 000 1.1 (increasing $10 000 by 10%)
After 2 years A
2
= A
1
(1.1)
= 10 000 1.1 1.1 (substituting the value of A
1
)
= 10 000 1.1
2
= 10 000(1 + )
2
After 3 years A
3
= A
2
1.1
= 10 000 1.1
2
1.1
= 10 000 1.1
3
= 10 000(1 + )
3
The pattern then continues such that the value of the investment after T years
equals:
$10 000 1.1
T
= 10 000(1 + )
T
We can generalise this example to any investment with yearly compound interest
calculations.
A = P
This formula, however, assumes that the interest is compounded yearly (which fre-
quently is not the case). If the interest rate is R% p.a. and interest is compounded quar-
terly, then the interest rate per period is R% 4. To account for the number of
compounding periods per year (n), we must divide the interest rate by the number of
periods per year and also adjust the number of terms over which the interest is calcu-
lated. If the investment is over T years and the calculation is performed n times per
year then the number of terms is n T.
This produces the following general formula for compound interest.
A = P
where A = amount (or future value) of the investment, $
P = principal (or present value), $
R = interest rate p.a., %
n = number of compounding periods (or rests) per year
T = time of investment, years.
Note: The compound interest formula derives a value for the nal amount or future
value. To nd the compound interest accrued, it is necessary to subtract the original
principal from the nal amount.
So CI = A P
where CI = compound interest, $.
In the nancial world, the terms future value (FV) or compounded value (CV) and
present value (PV) are used instead of amount and principal. Hence, the compound
interest formula becomes:
FV or CV = PV
10
100
---------
10
100
---------
10
100
---------
1
R
100
--------- +

T
1
R
100 n
------------------ +

n T
1
R
100 n
------------------ +

n T
Consider an investment of $6000 at 8% p.a. for 2 years with interest compounded quar-
terly. Interest is paid four times per year and therefore eight times in 2 years. The
interest rate must be calculated per quarter. This is done by dividing the annual rate by
four. Therefore, in the following example the rate is 2% per quarter.
The nancial calculations sections of later model Casio and TI-Nspire CAS calculators
offer built-in formulas to facilitate compound interest calculations. You are advised to
consult your calculator manual to become familiar with this section. Worked examples
9 and 10 can be used to demonstrate this facility.
Calculate the future value of an investment of $12 000 at 7% p.a. for 5 years, where
interest is compounded annually.
THINK WRITE
Write down the formula for the future
value.
FV = PV
Write down the value of PV, R, T and n. PV = $12 000, R = 7, T = 5, n = 1
Substitute into the formula. FV = 12 000
= 12 000
Calculate. = $16 830.62
1 1
R
100 n
------------------ +

n T
2
3 1
7
100 1
------------------ +

1 5
1
7
100
--------- +

5
4
9
WORKEDExample
Calculate the future value of an investment of $6000 at 8% p.a. for 2 years with interest
compounded quarterly.
THINK WRITE
Write down the formula for the future
value.
FV = PV
Write down the value of PV, R, T and n. PV = $6000, R = 8, T = 2, n = 4
Substitute into the formula. FV = 6000
= 6000
Calculate. = $7029.96
1 1
R
100 n
------------------ +

n T
2
3 1
8
100 4
------------------ +

4 2
1
8
400
--------- +

8
4
10
WORKEDExample
Graphics Calculator
Graphics Calculator
tip!
tip!
Financial
calculations
Step 1 Enter the nancial calculations section of your calculator (select TVM from
the Casio menu; in a calculator screen on the TI-Nspire press MENU, Finance,
Finance Solver).
Step 2 The function key (Compound Interest) accesses the compound interest
formula on the Casio, while the Finance Solver provides this facility on the
TI-Nspire CAS. The variables displayed are explained below.
n represents the number of compounding periods.
I% is the annual interest rate.
PV is the present value.
PMT is the payment for each instalment (used for regular periodic payments).
FV is the future value.
P/Y or PpY represents the number of instalment periods per year.
C/Y or CpY represents the number of compounding periods per year.
F2
Use a graphics calculator to calculate the future value after 5 years at 7% p.a. on an
investment with the present value of $12 000, where no regular payments are made, there
is one instalment period a year and interest is calculated once a year.
THINK WRITE/DISPLAY
Enter the following data (in the Compound Interest
screen for the Casio; in the Finance Solver for the
TI-Nspire):
n = 5 (Interest is calculated for 5 years.)
I% = 7 (Annual interest rate of 7% p.a.)
PV = 12 000 (Present value is $12 000.)
PMT = 0 (No regular payments are made.)
FV = 0 (This value will be calculated.)
P/Y or PpY = 1 (One instalment period per year.)
C/Y or CpY = 1 (Interest is calculated once a year.)
Casio:
(Scroll down for C/Y.)
TI-Nspire:
The function key (FV) on the Casio displays
the future value as $16 830.62.
Casio:
To access the FV on the TI-Nspire, tab the cursor
to the FV line then press .
TI-Nspire:
Write the answer. Future value is $16 830.60.
1
2
F5
3
4
11
WORKEDExample
Use the nancial calculations section of a Casio or TI-Nspire graphics calculator to
calculate the future value after 2 years at 8% p.a. on an investment with the present value
of $6000, where no regular payments are made, there is one instalment period a year and
interest is calculated 4 times a year.
THINK WRITE/DISPLAY
Enter the following data:
PV = 6000 (Present value is $6000.)
C/Y or CpY = 4 (Interest is calculated 4 times a year.)
The FV line displays the future value as $7029.96.
Casio:
TI-Nspire:
Write the answer. Future value would be $7030.
1
2
3
12
WORKEDExample
Ninkasi has $15 000 to invest for 3 years.
She considers the following options:
a a term deposit at 5.25% p.a. compounded annually
b a debenture in a company, paying an interest rate
of 5.08% p.a. compounded quarterly
c a building society, paying a return of 5.4% p.a.
compounded monthly
d a business venture with guaranteed return of
7.3% p.a. compounded daily.
All the investments are equally secure.
Advise Ninkasi which option to take.
THINK WRITE
a Write down the formula for compound interest.
a A = P
Write down the known values of the variables. P = $15 000
R = 5.25
T = 3
n = 1
A = 15 000
Evaluate. = 15 000(1.0525)
3
= 17 488.7018
Answer the question and include the appropriate
unit.
The compounded amount is
$17 488.70.
1
1
R
100 n
------------------ +

n T
2
3
1
5.25
100 1
------------------ +

1 3
4
5
13
WORKEDExample
THINK WRITE
b Repeat steps 1 and 2 performed in part a.
Note: The interest rate is given as per annum;
however, we need to know the rate per quarter,
hence we use n as 4. The interest is
compounded quarterly; that is, 4 times in one
year. Therefore in 3 years, interest will be
compounded 12 times.
b A = P
P = $15 000
R = 5.08
T = 3
n = 4
A = 15 000
Evaluate. = 15 000(1.0127)
12
= 17 452.633 91
appropriate unit.
$17 452.63.
c Repeat steps 1 and 2 performed in part a.
however, we need to know the rate per month,
hence we use n as 12. The interest is
compounded monthly; that is, 12 times in one
year. Therefore in 3 years, interest will be
compounded 36 times.
c A = P
P = $15 000
R = 5.4
T = 3
n = 12
A = 15 000
Evaluate. = 15 000(1.0045)
36
= 17 631.494 99
appropriate unit.
$17 631.49.
d Repeat steps 1 and 2 performed in part a.
however, we need to know the rate per day, hence
we use n as 365. The interest is compounded
daily; that is, 365 times in one year. Therefore
in 3 years, interest will be compounded
1095 times.
d A = P
P = $15 000
R = 7.3
T = 3
n = 365
Substitute the values into the given formula. A = 15 000
Evaluate.
= 15 000(1.0002)
1095
= 18 672.060 28
appropriate unit.
$18 672.06.
Compare answers from options a to d and
answer the question.
The best option for Tamara is d,
as she receives the greatest
amount of interest in the same
period of time.
1 1
R
100 n
------------------ +

n T
2
1
5.08
100 4
------------------ +

4 3
3
4
1
1
R
100 n
------------------ +

n T
2
1
5.4
100 12
--------------------- +

12 3
3
4
1 1
R
100 n
------------------ +

n T
2
1
7.3
100 365
------------------------ +

365 3
3
4
5
Calculation of compound
interest
1 Ray has $5000 to invest. He invests it for 3 years at 10% p.a., with interest paid annu-
ally. Calculate the future value of the investment.
2 Suzanne is to invest $15 000 for 2 years at 7% p.a., with interest paid annually.
Calculate the future value of the investment.
3 Kiri has $2000 to invest. She invests the money at 8% p.a. for 5 years, with interest
compounded annually. Calculate the future value of Kiris investment.
4 Use the formula to calculate the future value of each of the following investments
with interest compound annually.
a $4000 at 5% p.a. for 3 years
b $8000 at 3% p.a. for 5 years
c $18 000 at 8% p.a. for 4 years
d $11 500 at 5.5% p.a. for 3 years
e $8750 at 6.25% p.a. for 6 years
5 Carla is to invest $45 000 at 9.2% p.a. for 5 years with interest compounded six-
monthly. Calculate the future value of the investment.
6 A passbook savings account pays interest of 0.2% p.a. Luke has $500 in such an
account. Calculate the future value of the account after 2 years, if interest is
compounded quarterly.
1. The future value of an investment under compound interest can be calculated
by calculating the simple interest for each year separately.
2. The formula used to calculate compound interest is:
A = P
where A = nal amount, $
P = principal, $
R = interest rate, % p.a.
n = number of compounding periods per year
T = time, years.
3. The compound interest is calculated by subtracting the principal from the nal
amount.
4. In nancial terms, the compound interest formula may be written:
FV or CV = PV
where FV = future value, $
CV = compounded value, $
PV = present value, $
5. A graphics calculator is an aid in these calculations.
1
R
100 n
------------------ +

n T
1
R
100 n
------------------ +

n T
remember
1D
WORKED
Example
9, 11
WORKED
Example
10, 12
7 Noel is to invest $12 000 at 8% p.a. for 2 years with interest compounded quarterly.
Calculate the future value of the investment.
8 Vicky invests $30 000 in a one-year xed deposit at an interest rate of 6% p.a., with
interest compounding monthly. Calculate the future value of the investment upon
maturity.
9 Calculate the compounded value of each of the following investments.
a $960 for 1 year at 4.50% p.a. with interest compounded six-monthly
b $7500 for 3 years at 5.6% p.a. with interest compounded quarterly
c $152 000 for 2 years at 7.2% p.a. with interest compounded six-monthly
d $14 000 for 4 years at 9% p.a. with interest compounded monthly
e $120 000 for 20 years at 11.95% p.a. with interest compounded quarterly
10
A sum of $5000 is invested for 2 years at the rate of 4.75% p.a., compounded quar-
terly. The interest paid on this investment, to the nearest dollar, is:
11
After selling their house Mr and Mrs Dengate have $61 800. They plan to invest it at
6% p.a., with interest compounded annually. The value of their investment will rst
exceed $100 000 after:
12
Warren wishes to invest $10 000 for a period of 5 years. The following investment
alternatives are suggested to him. The best investment would be:
A simple interest at 9% p.a.
B compound interest at 8% p.a. with interest compounded annually
C compound interest at 7.8% p.a. with interest compounded six-monthly
D compound interest at 7.2% p.a. with interest compounded quarterly
E compound interest at 7.7% p.a. with interest compounded daily.
13
Which of the following investments, to be invested for 6 years and compounded semi-
annually at 8% p.a., will have a future value closest to $15 000?
14 Brittany has $13 500 to invest. An investment over a 2-year term will pay interest of
8% p.a. Calculate the compounded value of Brittanys investment if the compounding
period is:
15 Kerry invests $100 000 at 8% p.a. for a one-year term. For such large investments
interest is compounded daily.
a Calculate the daily percentage interest rate, correct to 4 decimal places.
b Calculate the compounded value of Kerrys investment on maturity.
c Calculate the amount of interest paid on this investment.
d Calculate the extra amount of interest earned, compared with the interest calcu-
lated at a simple interest rate.
A $475 B $495 C $1900 D $5475 E $5495
A 7 years B 8 years C 9 years D 10 years E 11 years
A $900 B $8500 C $9000 D $9500 E $10 000
a one year b six months c three months d monthly.
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201 Compound interest
1
2
---
1
2
---
multiple choice
multiple choice
WORKED
Example
13
multiple choice
multiple choice
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066 Simple & compound
interest
16 Simon invests $4000 for 3 years at
6% p.a. simple interest. Monica
also invests $4000 for 3 years but
her interest rate is 5.6% p.a., with
interest compounded quarterly.
a Calculate the value of Simons
investment on maturity.
b Show that the compounded
value of Monicas investment is
greater than Simons investment.
c Explain why Monicas invest-
ment is worth more than
Simons, despite receiving a
lower rate of interest.
Compound interest spreadsheet
Earlier we wrote a spreadsheet to show the growth of an investment over a number
of years under simple interest. We will now write a similar spreadsheet to show the
growth under compound interest.
1 Use the Compound interest weblink in your eBookPLUS and download the
spreadsheet.
2 Select Sheet 2, Compound Interest. This spreadsheet models a $10 000
investment at 5% p.a. interest with interest compounded annually (one
compounding period per year).
3 Use the graphing function to draw a graph showing the growth of this
investment over 10 years. Compare this graph with the graph drawn for the
corresponding simple interest investment.
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eBookplus eBookplus
Digital doc:
Spreadsheet
To investigate calculation of compound interest from a table of compounded
values, use the Compound interest weblink in your eBookPLUS.
Graphing compound interest
functions
Earlier we drew graphs of the simple interest earned by various simple interest invest-
ments and found that these graphs were linear. This occurred because the amount of
interest earned in each interest period was the same.
With compound interest the interest earned in each interest period increases, and so
when we graph the future value of the investment, an exponential graph results. The
shape of the graph is a smooth curve which gets progressively steeper. We can use the
compound interest formula to complete tables that will then allow us to graph a com-
pound interest function.
4 Change the number of compounding periods per year to see the change in the
value of the investment. Your graph should change as you change the information.
5 Change other information, such as the principal and interest rate, to see the
change in your graph.
6 Move your cursor throughout the spreadsheet and observe the formulas in the cells.
7 Save this spreadsheet as Compound Interest.
eBookplus eBookplus
Digital doc:
Spreadsheet
Pierre invests $5000 at 5% p.a., with interest
compounded annually.
a Complete the table below to show the future
value at the end of each year.
b Draw a graph of the future value of the
investment against time.
Continued over page
No. of years 0 1 2 3 4 5
Future value
14
WORKEDExample
To graph the interest earned, the principal must be subtracted from the future value
of the investment. As with simple interest, such graphs can be used to compare
investments.
Graphics calculators can speed up these calculations as shown in the following worked
example.
THINK WRITE
a Complete the table using the
compound interest formula.
a
b Draw the graph by drawing a
smooth curve between the
marked points.
b
No. of years 0 1 2 3 4 5
Future value $5000 $5250 $5512 $5788 $6077 $6381
1 0
0
2 3 4 5
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(
$
)
Years
6000
7000
5000
Amy is to invest $2000 at 5% p.a.,
6% p.a. or 7% p.a., compounded
annually.
a Copy and complete the table
at right to nd the future
value of each investment at
the end of each year.
b Draw a graph that will allow the investments to be compared.
THINK WRITE
a Use the compound interest
formula to complete the table.
a
b Draw each graph by joining the
points with a smooth curve.
b
Future value (5%)
Future value (6%)
Future value (7%)
Future value (5%) $2100 $2205 $2315 $2431 $2553
Future value (6%) $2120 $2247 $2382 $2525 $2676
Future value (7%) $2140 $2290 $2450 $2622 $2805
1 2 3 4 5
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(
$
)
Years
0
0
2100
2000
2200
2300
2400
2500
2600
2700
2800
Future value (7%)
Future value (6%)
Future value (5%)
15
WORKEDExample
Solve Worked example 15 using a graphics calculator.
THINK WRITE/DISPLAY
Casio fx-9860G AU
a To create a table, press:

7: TABLE.
Enter the formulas as:
Y1 = 2000(1 + 5 100)^X
Y2 = 2000(1 + 6 100)^X
Y3 = 2000(1 + 7 100)^X.
Where X represents the time.
a
To dene the range of X, press (SET).
To return to the equations screen, press .
To display the table, press (TABL).
b To return to the equations screen, press .
To set appropriate window settings, press:
(V-WIN).
Enter the elds as shown, and then press .
Note: The scale of the y-axis is set as 500.
b
To display the three graphs, press:
(TABL)
(G-CON).
To trace points on the graphs, press:

(TRCE).
a To enter the data in a Lists & Spreadsheets page, press:
HOME c
3: Lists &Spreadsheets 3.
Using the NavPad ` to highlight the cell, label
Column A as years. Enter the values 1 to 5 in this
column.
Label Column B as fv5. In the header cell below,
complete the entry line as:
= 2000 (1 + 5 100)^years.
Then press ENTER .
a
Continued over page
1
MENU
2
F5
EXE
3
F6
1 EXIT
SHIFT
F3
EXE
2
F6
F5
SHIFT
F1
1
2
16
WORKEDExample
Doubling your money
In nancial circles a formula is commonly used to determine the length of time it
takes to double a sum of money invested at a compound interest rate of R%.
Number of years to double money =
Lets investigate the accuracy of this statement.
Task 1
Consider a $10 000 sum of money invested at an interest rate of 10% p.a.
compounding monthly. If the above equation is accurate, the number of years
required to double this money should be 70 divided by 10; i.e. 7 years. Apply the
compound interest formula for a period of 7 years. You should nd that the
$10 000 amounts to a sum of $20 079.20 (roughly double the original amount).
THINK WRITE/DISPLAY
Label Column C as fv6. In the header cell
below, complete the entry line as:
= 2000 (1 + 6 100)^years.
Then press ENTER .
Label Column D as fv7. In the header cell
below, complete the entry line as:
= 2000 (1 + 7 100)^years.
Then press ENTER .
b To draw a scatterplot, press:
HOME c
MENU b
3: Graph Type 3
4: Scatter Plot 4.
The axes appear with the x-variable
highlighted.
Press ENTER , then select years.
Tab e to the y-variable, press ENTER ,
then select fv5 as the y-variable, press
ENTER .
b
To adjust the window settings, press:
MENU b
4: Window 4
9: Zoom-Data 9.
Repeat step 1 to set up the graph of years
against fv6 followed by years against fv7.
The graphs can be traced using the Trace
option.
3
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70
R
------
Copy and complete the following table.
What do you conclude about the accuracy of the statement from these calculations?
Task 2
Draw up a table similar to the previous one and vary the investment quantities, the
interest rate and the compounding period. Calculate the number of years required
for the investment to double from the formula above. Add these gures to the table.
Complete the table by calculating the amount in each case.
What conclusion can you draw from the results of your calculations?
Task 3
1 We can use a graphics calculator to determine the time required for a sum of
money to double in value.
Lets consider our original investment of $10 000 at 10% p.a. compounding
monthly.
To create a table of values, press:

7: TABLE.
Enter the formula.
Y1 = 10 000(1 + 10 1200)^X.
To set the table with the appropriate
domain, press (SET) and enter
the values as shown.
To view the table, press (TABL).
To nd how long it takes for the
investment to reach $20 000, scroll
down the list of values.
This shows that it takes 84 months (7 years) for the $10 000 to amount to $20 000.
(Continued)
Investment Interest rate Compounding period Years Amount
$10 000 10% p.a. Yearly 7
$10 000 10% p.a. 6-monthly 7
$10 000 10% p.a. Quarterly 7
$10 000 10% p.a. Monthly 7 $20 079.20
$10 000 10% p.a. Weekly 7
MENU
F5
F6
The formula is:
.
Where:
A = 20 000
P = 10 000
R = 10
n = 12
To nd T, complete the entry line as:
solve .
The time required to double the value of the investment is 84 months (7 years).
2 Repeat the calculations using a variety of investment values, interest rates and
compounding periods.
3 Are your conclusions consistent with those of Tasks 1 and 2? How would you rate
the accuracy of the statement?
Determining the interest rate in
compound interest investments
The aim of this activity is to investigate some methods that could be used to
determine the interest rate required for a given investment to achieve a particular
nal value in a given period of time. This activity is a challenging one, with only
minimal guidance given.
Consider an investment of $1000 with interest compounding yearly. Let us
assume that we can invest this money for 5 years and at the end of that time the
money would amount to $1200. What interest rate would this require?
Using trial and error
1 Write down your compound interest formula.
2 Using the present value, the number of compounding periods per year and the
time, try various values for the interest rate. Continue your trials until you have
found an interest rate that produces a value equal to, or slightly greater than
$1200 for the future value. Record your trials in a table.
3 What interest rate do you consider is necessary for this investment?
Solving the compound interest formula
1 Write down your compound interest formula.
2 Substitute values for the present value, future value, time and number of
compounding periods per year. The only unknown in your equation is the
interest rate.
3 Try to solve your equation to nd a value for R.
Hint: The method involves taking the fth root of .
4 Compare your answer with that obtained using trial and error.
A P 1
R
100 n
------------------ +

n T
=
10 000 1
10
1200
------------ +

x
20 000, x =

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future value
present value
-------------------------------
1 Write an equation and use the solve command to nd the value for the interest rate.
2 Compare your answer with those obtained previously.
Using the nancial calculation section on a graphics calculator
1 Enter the nancial section of the calculator.
2 In the compound interest section, enter values for all known variables. Your
only unknown should be I% (which you set to 0).
3 Press the appropriate function key to reveal the unknown interest rate. (For the
Casio, press (I%); for the TI-Nspire CAS calculator, place the cursor on
I(%):0, and press .) Is your answer consistent with those obtained above?
It is obvious from this activity, the manual calculation of an interest rate from the
compound interest formula is quite tedious. A graphics calculator greatly reduces
the workload.
Comparing simple and compound
interest functions using graphics
calculators
Task 1
Your grandfather left you $20 000 in his will. You have no need to use the
money at this stage, so you are looking at investing it for approximately
12 years. Your research has narrowed down your options to 4.25% p.a. simple
interest or 3.6% p.a. interest compounding yearly. At this stage, you do not
anticipate having to withdraw your money in the short term; however, it may be
necessary to do so.
Let us investigate to determine which would be the better option if you were
forced to withdraw your money at any period of time within 12 years.
When using graphics calculators, there are often different ways of approaching a
problem, as we often nd when solving problems using pen and paper. The
Casio fx-9860G AU calculator and the TI-Nspire CAS calculator allow us to show
two different methods which could be used to solve this problem.
1 To construct a table of values, press:
7: TABLE.
Y1 = 20 000 + 20 000 4.25 X 100 (SI)
Y2 = 20 000(1 + 3.6 100)^X. (CI)
2 To set the range of X, press (SET).
(Continued)
F2
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MENU
F5
3 To view the contents of the table,
press (TABL).
4 Use the down arrow to scroll down the table,
comparing the values for Y1 and Y2.
At 11 years, the Y2 value becomes greater
than the Y1 value.
5 To rene the time when this change occurs
press:
(SET).
Adjust the values in the Table Setting window
as shown, pressing after each entry.
6 To display the table, press (TABL).
It can be seen that the change occurs at 10.1.
7 To graph the functions, the window settings
will need to be changed. Press:
(V-WIN).
Enter the window settings as shown, and then
press .
Press to reset the table settings to:
Start: 0 End: 12 Step: 1.
8 From the functions screen, press:
(TABL)
(G-CON).
To trace the graphs press:
(TRCE).
Conrm that this is consistent with the result from the table.
1 To nd an algebraic solution, it is necessary
to nd the intersection of the two
simultaneous equations:
FV = 20 000 + for simple
interest
FV = 20000 for compound interest.
F6
EXIT
F5
EXE
F6
SHIFT
F3
EXE
F5
F6
F5
SHIFT
F1
20 000 4.25 x
100
------------------------------------------
1
3.6
100
--------- +

x
On a Calculator page, complete the entry line as:
=
Simple and compound interest funds will have the same value after approximately
10.1 years. At this stage it is unknown which of the two funds provide the better
option prior to this time. Looking at their graphs can determine this.
2 To draw the graphs, press:
HOME c
f1(x) = 20 000 +
f2(x) = 20 000 .
Press ENTER after each entry.
Adjust the window settings as shown.
3 The graph shows that the simple interest
investment (the straight line) is initially better
than the compound interest investment
(curved line). The two intersect at a point,
after which the compound interest investment
is better.
4 To nd the point of intersection, press:
MENU b
6: Points & Lines 6
3: Intersection Point(s) 3.
Move the cursor close to the intersection of
the two lines (a pointing nger will appear),
then press ENTER . The point of
intersection will appear.
After approximately 10.1 years, the two investments both amount to $28 576.20.
5 Write a paragraph summarising the results of this investigation. Describe which
option would be the better one considering that you may be forced to withdraw
your money at any time within the 12 years. Justify any statements.
Task 2
If the investment sum had been $10 000 instead of $20 000 (half the original
amount), would this affect the trends shown in Task 1? Investigate and write your
conclusions.
Task 3
If the interest rates were half the quoted ones, (i.e. 2.125% p.a. simple interest and
1.8% p.a. compounding yearly), predict what effect this would have on the outcome
of the investigation. Repeat Task 1 and write your conclusions.
solve (20 000
20 000 4.25 x
100
------------------------------------------ + 20 000 1
3.6
100
--------- +

x
x ). ,
20 000 4.25 x
100
------------------------------------------
1
3.6
100
--------- +

x
interest functions using a spreadsheet
Let us look at the previous investigation using a spreadsheet.
Task 1
Your grandfather left you $20 000 in his will. You have no need to use the money
at this stage, so you are looking at investing it for approximately 12 years. Your
research has narrowed down your options to 4.25% p.a. simple interest or
3.6% p.a. interest compounding yearly. At this stage, you do not anticipate having
to withdraw your money in the short term; however, it may be necessary to do so.
forced to withdraw your money at any period of time within 12 years.
The spreadsheet and graphs we are aiming to produce appear as follows.
1 Enter the spreadsheet heading shown in cell A1.
2 Enter the side headings in cells A3 to A6.
3 In cell B3 enter the value of 20 000 then format it to currency with 0 decimal
places.
4 Enter the numeric values shown in cells B4, B5 and B6.
5 In row 8, enter the column headings shown.
6 In cell A9, enter the value 0.
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7 In cell A10, enter the formula =A9+1. The value of 1 should appear. Copy this
formula down from cell A11 to A21.
8 The formula for the simple interest value is:
principal + interest
principal + principal*rate*time/100.
Enter the formula =$B$3+$B$3*$B$4*A9/100 in cell position B9, then copy
this formula down from B9 to B21. Format these cells to currency with
0 decimal places. Check that the values which appear agree with those on the
spreadsheet displayed.
9 The formula for the compound interest value for cell position C9 is:
=$B$3*(1+$B$5/(100*$B$6))Â9
Enter this value, then copy it down from C9 to C21. Format these cells to
currency with 0 decimal places. Check the values with those on the
spreadsheet displayed.
10 Use the graphing facility of your spreadsheet to produce a graph similar to the
one displayed on the previous page.
11 From the table and the shape of the graphs it is obvious that a critical point
occurs somewhere between the 10-year and 11-year marks. Modify your
spreadsheet by inserting rows between these two years. Enter part-year values;
such as 10.2, 10.5 and so on, in column A. Copy the formulas in columns B
and C to complete the entries. Continue to investigate until you can nd a
fairly exact value for the time when these two graphs cross.
12 Write a paragraph summarising the results of your spreadsheet and graphs.
Describe which option would be the better one, considering that you may be
forced to withdraw your money at any time within the 12 years. Support any
conclusions by referring to your spreadsheet and graphs.
Task 2
If the investment sum had been $10 000 instead of $20 000 (half the original
amount), would this affect the trends shown in Task 1? Investigate and write your
conclusions.
Task 3
If the interest rates were half the quoted ones (2.125% p.a. simple interest and
1.8% p.a. compounding yearly) predict what effect this would have on the outcome
of the investigation. Repeat Task 1 and write your conclusions.
1. Graphing the future value of a compound interest investment results in an
exponential graph.
2. To graph the amount of compound interest paid, we need to subtract the
principal from the future value.
3. By drawing the graphs of several investments on one set of axes, we can
compare the investments.
remember
Graphing compound interest
functions
1 An amount of $8000 is invested at 5% p.a. with interest compounded annually.
a Copy and complete the table below to calculate the future value of the investment at
the end of each year.
b Draw a graph of the future value against the length of the investment.
2 An amount of $12 000 is to be invested at 8% p.a. with interest compounded annually.
a Copy and complete the table below to calculate the future value at the end of each
year.
c Use your graph to nd the future value of the investment after 10 years.
3 Draw a graph to represent the future value of the following investments against time.
a $15 000 at 7% p.a. with interest compounded annually
b $2000 at 10% p.a. with interest compounded annually
4 A graph is drawn to show the future value of an investment of $2000 at 6% p.a. with
interest compounding six-monthly.
a Complete the table below.
b Use the table to draw the graph.
5 An amount of $1200 is invested at 4% p.a. with interest compounding quarterly.
a Graph the future value of the investment at the end of each year for 10 years.
b Graph the compound interest earned by the investment at the end of each year.
6 James has $8000 to invest at either 4% p.a., 6% p.a. or 8% p.a. compounding annually.
a Complete the table below to show the interest that he would earn over 5 years.
Future value
Future value
Years 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
FV
Interest (4%)
Interest (6%)
Interest (8%)
1E
WORKED
Example
14, 16
WORKED
Example
15, 16
7 Petra has $4000 to invest at 6% p.a.
a Complete the table below to show the future value of the investment at the end of
each year, if interest is compounded i annually, ii six-monthly.
b Show this information in graphical form.
1 Calculate the simple interest earned on an investment of $9240 made at 7.4% p.a. for
3 years.
2 Corey invests $14 200 for 5 years in debentures that pay 4.3% p.a. simple interest.
Calculate the total value of Coreys investment at maturity.
3 Emma invests $27 500 in investment bonds which pay 6.25% p.a. simple interest for
2 years. Calculate the interest earned in this investment.
4 The interest that Emma receives is paid in quarterly instalments. Calculate the size of
each quarterly interest payment.
5 Vladimir invests $2000 at 5% p.a. for 3 years with interest compounded annually.
Calculate the compounded value of Vladimirs investment.
6 Calculate the amount of interest earned by Vladimir.
7 Calculate the compounded value of an investment of $6000 at 6.4% p.a. for 2 years
with interest compounded annually.
with interest compounded six-monthly.
with interest compounded quarterly.
10 Calculate the compounded value of an investment of $13 200 at 7.2% p.a. for
18 months, with interest compounded monthly.
Nominal and effective interest rates
An interest rate might be nominated at 3.5% p.a. compounding monthly. In reality, we
would not receive 3.5% per year on the money invested because the interest is com-
pounding monthly. The actual percentage return on the investment is more than 3.5%
per year because the interest calculated each consecutive period is based on a higher
principal. The effective interest rate or actual interest rate represents the actual per-
centage return per year on an investment. It could also be considered as the simple interest
rate that would produce the same return as the nominated compound interest rate.
Annually
Six-monthly
2
Note: The interest rate in the previous worked example is 3.5% p.a. compounding
monthly and this is equivalent to a simple interest rate of 3.56% p.a. Because interest
rates may be expressed in a variety of ways, the best way to compare interest rates is to
determine the effective interest rate in each case.
The effective interest rate can be calculated quickly using a graphics calculator.
1. To calculate the effective interest rate, press:

C: TVM
(CNVT).
Enter n and I% as shown, pressing after
each entry.
2. To show the effective interest rate, press (EFF).
This gives an effective interest rate of 3.56% p.a.
(to 2 decimal places).
An interest rate is quoted at 3.5% p.a. compounding monthly. What is the effective
interest rate?
THINK WRITE
No principal is quoted, so select a principal of $100. Let P = $100
Select a time period of 1 year. T = 1 year
Write values for R and n from the quoted interest
rate.
R = 3.5
n = 12
Write down the formula for compound interest. A = P
Substitute the values into the formula.
= 100
Evaluate, rounding to the nearest cent. = 100
= $103.56
Calculate the actual interest. CI = A P
= $103.56 $100
= $3.56
Represent this interest as a percentage of the
principal.
% interest = 100
= 3.56%
This represents the effective interest rate. Effective interest rate is 3.56% p.a.
1
2
3
4
1
R
100 n
------------------ +

n T
5
1
3.5
100 12
--------------------- +

12 1
6
1
3.5
1200
------------ +

12
7
8
$3.56
$100
-------------
9
17
WORKEDExample
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating effective
interest rates
MENU
F5
EXE
F1
1. To calculate the effective interest rate, press:
HOME c
1: Calculator 1
MENU b
8: Finance 8
5: Interest Conversion 5
2: Effective Interest Rate 2.
eff(3.5, 12).
This gives an effective interest rate of 3.56% p.a. (to 2 decimal places).
Jack has the choice of investing his money in three different funds:
a 3.9% p.a. compounding quarterly
b 3.95% p.a. simple interest
c 3.85% p.a. compounding daily.
Which investment would provide him with the greatest return?
Continued over page
THINK WRITE
a Find the effective interest rate for
each account, taking a principal of
$100 and a time of 1 year.
a Take a principal of $100 and a time of 1 year.
Write down the compound interest
formula.
A = P
Write down values for P, R, T
and n.
P = $100
R = 3.9
T = 1
n = 4
Substitute the values into the
formula.
A = 100
Evaluate, rounding to the
nearest cent.
= 100
= $103.96
Calculate the actual interest. CI = A P
= $103.96 $100
= $3.96
Calculate the effective interest
rate.
Effective interest rate = 100%
Effective interest rate = 3.96% p.a.
b The simple interest rate is the
effective interest rate, so no
calculations are required in this case.
b Effective interest rate = 3.95% p.a.
1
1
R
100 n
------------------ +

n T
2
3
1
3.9
100 4
------------------ +

4 1
4
1
3.9
400
--------- +

4
5
6
$3.96
$100
-------------
18
WORKEDExample
Nominal and effective
interest rates
1 Tamaras bank offered her an interest rate of 4% p.a. compounding quarterly. What is
the equivalent effective interest rate?
2 If the bank offered Tamara the same interest rate but compounded daily, what effective
interest rate would this represent?
3 What simple interest rate would be equivalent to a rate of 3.75% p.a. compounding
6-monthly?
4 Which would provide the better return as an investment?
a 4.2% p.a. compounding quarterly b 4.175% p.a. compounding monthly
5 Patrick was offered an investment rate of 4.97% p.a. compounding daily or 5% p.a.
compounding monthly. Which should he choose?
THINK WRITE
c Repeat steps as for
part a to calculate the
effective interest rate.
c A = P
P = $100
R = 3.85
T = 1
n = 365
A = 100
= 100
= $103.92
CI = A P
= $103.92 $100
= $3.92
Effective interest rate = 100%
Effective interest rate = 3.92% p.a.
Compare the interest
rates and provide an
answer.
3.9% p.a. compounding quarterly 3.96% p.a. effective rate
3.95% p.a. simple interest 3.95% p.a. effective rate
3.85% p.a. compounding daily 3.92% p.a. effective rate
Answer the question. So the option which would provide Jack with the greatest
return is 3.9% p.a. compounding quarterly.
1 1
R
100 n
------------------ +

n T
1
3.85
100 365
------------------------ +

365 1
1
3.85
36 500
---------------- +

365
$3. 92
$100
---------------
2
3
1. The effective interest rate represents the actual percentage return per year on an
investment.
2. To compare interest rates, it is best to determine the effective interest rate in
each case.
remember
1F
WORKED
Example
17
WORKED
Example
18
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WorkSHEET 1.2
Simple interest
Simple interest is given by where I = interest, $
P = principal, $
R = rate of interest p.a., %
T = term of interest, years
The total amount is given by A = P + I.
When calculating simple interest, the interest earned is the same for each time period.
Finding P, R and T
To nd the principal P =
To nd the interest rate R =
To nd the period of the loan or investment T =
Graphing simple interest functions
When a simple interest function is graphed, it gives
rise to a linear graph.
Compound interest
The compound interest formula is given by A = P
where A = nal value, $
P = principal, $
R = interest rate, % p.a.
n = number of compounding periods per year
T = time of investment, years.
In the nancial world, the formula may be quoted as FV or CV = PV
where FV = future value, $
CV = compounded value, $
PV = present value, $.
The amount of compound interest paid is found by subtracting
the principal from the future value of the investment.
When a compound interest function is graphed, it gives rise to
an exponential curve.
Effective interest rates
The effective interest rate represents the simple interest rate that would produce the
same return as the nominal compound interest rate.
Effective interest rates are used to compare interest rates which are expressed in
different terms.
summary
I
PRT
100
----------- =
100 I
R T
-----------------
100 I
P T
-----------------
100 I
P R
-----------------
F
u
t
u
r
e

v
a
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1
R
100 n
------------------ +

n T
1
R
100 n
------------------ +

n T
F
u
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u
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Time
1 Calculate the simple interest earned on an investment of $5000 at 4% p.a. for 5 years.
2 Calculate the simple interest earned on each of the following investments.
a $3600 at 9% p.a. for 4 years
b $23 500 at 6% p.a. for 2 years
c $840 at 2.5% p.a. for 2 years
d $1350 at 0.2% p.a. for 18 months
e $45 820 at 4.75% p.a. for 3 years
3 Dion invests $32 500 in a debenture paying 5.6% simple interest for 4 years.
a Calculate the interest earned by Dion.
b Calculate the total value of Dions investment after 4 years.
c If the debenture paid Dion in quarterly instalments, calculate the value of each interest
payment.
4
Two banks pay simple interest on short-term deposits. Bank A pays 6% p.a. over 4 years and
Bank B pays 6.5% p.a. for 3 years. The difference between the two banks nal payout
gure if $5000 was invested in each account is:
5
Clayton invested $360 in a bank for 3 years at 8% simple interest each year. At the end of
the 3 years, the total amount he will receive is:
6
Philip borrowed $7000 and intended to pay it back in 4 years. The terms of the loan
indicated Philip was to pay 9% p.a. interest. The interest Philip paid on the loan was:
7 Bradley invests $15 000 for a period of 4 years. Calculate the interest rate, given that
Bradley earned a total of $3900 interest.
8 Kerry invests $23 500 at 4.6% p.a. If he earned $1351.25 in interest, calculate the length of
time for which the money was invested.
9
A loan of $5000 is taken over 5 years. The simple interest is calculated monthly. The
interest bill on this loan is $1125. The simple interest rate per year on this loan is:
10
The principal invested in an investment bond that will accumulate $2015 after 6 months
invested at 6 % p.a. is:
A $0 B $62.50 C $1137.50 D $1200 E $5062.50
A $28.80 B $86.40 C $388.80 D $446.40 E $453.50
A $630 B $2520 C $9520 D $9881 E $25 200
A 3% B 3.75% C 4% D 4 % E 5%
A $6000 B $6200 C $50 000 D $60 000 E $62 000
CHAPTER
review
1A
1A
1
2
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1A
1A
multiple choice
1
2
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multiple choice
multiple choice
1A
1B
1B
multiple choice
1B
1
2
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1B
multiple choice
1
2
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11
A loan of $10 000 is taken over 10 years. The total interest bill on this loan is $2000. The
simple interest rate per year on this loan is:
12 An amount of $7500 is to be invested at 6% p.a. simple interest.
a Copy and complete the table below to calculate the interest over 5 years.
c What is the gradient of the linear graph drawn?
d Use your graph to nd the amount of interest that would have been earned after 10 years.
13 Vicky invests $2400 at 5% p.a. for 3 years with interest compounded annually. Calculate the
compounded value of the investment at the end of the term.
14 Barry has an investment with a present value of $4500. The investment is made at 6% p.a.
with interest compounded six-monthly. Calculate the future value of the investment in 4 years.
15 Calculate the compounded value of each of the following investments.
a $3000 at 7% p.a. for 4 years with interest compounded annually
b $9400 at 10% p.a. for 3 years with interest compounded six-monthly
c $11 400 at 8% p.a. for 3 years with interest compounded quarterly
d $21 450 at 7.2% p.a. for 18 months with interest compounded six-monthly
e $5000 at 2.6% p.a. for 2 years with interest compounded quarterly
16 Dermott invested $11 500 at 3.2% p.a. for 2 years with interest compounded quarterly.
Calculate the total amount of interest paid on this investment.
17 Kim and Glenn each invest $7500 for a period of 5 years.
a Kim invests her money at 9.9% p.a. with interest compounded annually. Calculate the
compounded value of Kims investment.
b Glenn invests his money at 9.6% p.a. with interest compounded quarterly. Calculate the
compounded value of Glenns investment.
c Explain why Glenns investment has a greater compounded value than Kims.
18 $20 000 is to be invested at 4% p.a. with interest compounded annually.
a Copy and complete the table below to calculate the future value at the end of each year.
c Use your graph to nd the future value of the investment after 10 years.
19 Noel deposited his money in an investment account returning 3.87% p.a. compounding
monthly. What is the equivalent effective interest rate?
20 Christof can choose from two investment accounts. One returns 4.1% p.a. compounding
monthly while the other returns 4% p.a. compounding daily. Which investment account
should he choose?
21 A building society advertises investment accounts at the following rates:
a 3.875% p.a. compounding daily
b 3.895% p.a. compounding monthly
c 3.9% p.a. compounding quarterly.
Which account should Christof choose? Justify your answer by providing evidence for your
choice.
A 1.5% B 2% C 3% D 4 % E 5%
Interest
Future value
1B
multiple choice
1
2
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1C
1D
1D
1D
1
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1D
1D
1E
1F
1F
1F
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Chapter 1
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ACTIVITIES eBookplus
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SkillSHEET 1.1: Practise substitution into formula
(page 10)
SkillSHEET 1.2: Practise conversion of units of
time (page 10)
Digital docs
SkillSHEET 1.3: Practise substitution into the
simple interest formula (page 15)
Spreadsheet 205: Investigate simple interest
(page 17)
Digital doc
WorkSHEET 1.1: Calculate interest, principal
amounts, duration and rates for simple interest
scenarios (page 22)
Digital docs
Spreadsheet 201: Investigate compound interest
( page 33, 35)
Spreadsheet 066: Investigate simple and compound
interest (page 33)
Spreadsheet 201: Investigate compound interest
(page 34)
Interactivity
Compound interest int-0193: Consolidate your
understanding of compound interest by playing
Who wants to be a millionaire? (page 23)
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WorkSHEET 1.2: Calculate and compare variables
in different investment scenarios (page 50)
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Test Yourself: Take the end-of-chapter test to test
your progress (page 53).
To access eBookPLUS activities, log on to
1A Simple interest
1B Finding P, R and T
1C Graphing simple interest functions
1D Calculation of compound interest
1F Nominal and effective interest rates
Chapter review
www.jacplus.com.au

2
syllabus
reference
Strand
Core topic
Managing money 2
In this
chapter
2A Ination and appreciation
2B Modelling depreciation
2C Straight line depreciation
2D Declining balance or
diminishing value method
of depreciation
2E Depreciation tables
2F Future and present value
of an annuity

Appr

eciation
and
depreciation

5_61_60344_MQMA12Q_2E_02 Page 55 Friday, August 21, 2009 6:31 AM

56

M a t h s Q u e s t M a t h s

A

Y

e a r 1 2 f

o r Q u e e n s l a n d

Intr

oduction

W

ith the passing years, it seems that the cost
of goods and services continues to rise. This

appreciation

in price is known as

ination

.
In Australia, these price movements are
measured by the

Consumer Price Index
(CPI)

. When goods lose value, this is called

depreciation

. While some assets such as
houses and land increase in value in the long
term, others, such as new cars and com-
puters, continue to decrease. Throughout
this chapter we shall look at methods of cal-
culating appreciation and depreciation; how
these may be represented graphically; and
how they can help us plan for the future.

1

Calculate the following, giving your answer in decimal form.

a

1

+

b

1

+

c

1

+

d

1

e

1

f

1

2


a

10% of $40

b

12.5% of $40

c

3.95% of $100

d

4.125% of $10

e

5.5% of $20

f

3.625% of $120.50

3

Calculate the following, rounding to the nearest cent.

a

Increase $40 by 10%.

b

Increase $2.50 by 20%.

c

Increase $7.45 by 2.5%.

d

Decrease $20 by 10%.

e

Decrease $145 by 6.25%.

f

Decrease $4000 by 1.5%.

4

a

Express $20 as a percentage of $50.

b

Express $350 as a percentage of $400.

c

Express $6.45 as a percentage of $10.

d

Express 45c as a percentage of $10.

e

Express $1.80 as a percentage of $3.50.

f

Express 12.5c as a percentage of $8.

5

Calculate the following, expressing your answer in decimal form correct to 2 decimal
places.

a

b

c

d

e

f
10
100
---------
1
100
---------
3.5
200
---------
3.75
100
----------
4.5
100
---------
3
1200
------------
1
3
100
--------- +
,
_
2
1
3
100
---------
,
_
2
1
4.2
600
--------- +
,
_
5
1
4.2
600
---------
,
_
5
1
3.875
1200
------------- +
,
_
10
1
3.875
1200
-------------
,
_
10
C h a p t e r 2 A p p r e c i a t i o n a n d d e p r e c i a t i o n 57
The Consumer Price Index (CPI) measures price movements in Australia. Let us
investigate this further to gain an understanding of how this index is calculated.
A basket of goods and services, representing a high proportion of household
expenditure is selected. The prices of these goods are recorded each quarter. The
basket on which the CPI is based is divided into eleven groups, which are further
divided into subgroups. The groups are: food, alcohol and tobacco, clothing and
footwear, housing, household contents and services, health, transportation,
communication, recreation, education, nancial and insurance services. Weights
are attached to each of these groups to reect the importance of each in relation to
the total household expenditure. The following table shows the weights of the
eleven groups.
The weights indicate that a
typical Australian household
spends 17.7% of its income
on food purchases, 5.2% on
clothing and footwear and so
on. The CPI is regarded as an
indication of the cost of living
as it records changes in the
level of retail prices from one
period to another.
Let us consider a simplied
example showing how this
CPI is calculated, and how we
are able to compare prices
between one period and
another.
Take three items with prices
as follows:
A pair of jeans costing $75
A hamburger costing $3.90
A CD costing $25.
Let us say that during the next period of time, the jeans sell for $76, the hamburger
for $4.20 and the CD for $29. This can be summarised in a table.
The appropriate weight of each item is multiplied by the price of the item to
determine what proportion the household would spend on each item in each period.
The total weighted expenditure is then calculated.
(Continued)
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CPI group
Weight
(% of total)
Food 17.7
Alcohol and tobacco 7.4
Clothing and footwear 5.2
Housing 19.8
Household contents and services 8.1
Health 4.7
Transportation 15.2
Communication 2.9
Recreation 12.3
Education 2.7
Financial and insurance services 4.0
Total all groups 100
Period 1 Period 2
Item Weight (W) Price (P) W P Price (P) W P
Jeans 5.2 $75 390 $76 395.2
Hamburger 17.7 $ 3.90 69.03 $ 4.20 74.34
CD 12.3 $25 307.5 $29 356.7
Total 766.53 826.24
The rst period is regarded as the base and is allocated an index number of 100.
The second period is compared with the rst period and is expressed as a
percentage of it. So, period 2 is 826.24 766.53 100%; that is, 107.8% compared
with period 1 as 100%. This means that the average price of these items has risen
by 7.8% (the ination factor) from period 1 to period 2 and the CPI for period 2 is
107.8.
Task 1
1 Take 8 items with which you are quite familiar, each item from a different
group (similar to the ones chosen in the previous example jeans,
hamburger, CD). Slot them into their correct categories and note the weighting
for each.
2 Draw up a table similar to the previous one, entering the item names and
corresponding weightings.
3 Let the period 2 price be the typical prices of the items at this period of time.
Enter these values into the table.
4 Let the period 1 price be the prices of these items one year ago (use your
knowledge of these items to determine an educated realistic estimate). Enter
these values into the table in the period 1 price column.
5 Complete the table as demonstrated.
6 Determine the CPI for period 2 compared with period 1 as the base period.
7 What is your ination factor?
Task 2
1 Conduct a search of the World Wide Web using the words ination CPI
Australia.
2 Research the history and use of the CPI in Australia. What items are in
the subgroups? You should discover that separate CPI indices are
calculated for each Australian State. These are then combined to produce
an average CPI for the whole of Australia, like that shown in the graph
below.
3 Write a report of your ndings. Remember to reference the source of your
material.
1996
1
0
1
%
1
0
1
%
1999 2002
Quarterly change
2005 2008
Ination and appreciation
One of the measures of how an economy is performing is the rate of ination. Ination
is the rise in prices within an economy and is generally measured as a percentage. In
Australia this percentage is called the Consumer Price Index (CPI). By looking at the
ination rate we can estimate what the cost of various goods and services will be at
some time in the future.
To estimate the future price of an item one year ahead, we increase the price of an
item by the rate of ination. The nancial functions of graphics calculators can assist
these calculations.
When calculating the future cost of an item several years ahead, the method of calcu-
lation is the same as for compound interest. This is because we are adding a percentage
of the cost to the cost each year.
Remember the compound interest formula is A P and so in these
examples P is the original price, R is the ination rate expressed as a % p.a., n is the
number of rests per year and T is the time in years. Generally the ination is expressed
as a yearly rate, so the value of n is 1.
The cost of a new car is $35 000. If the ination rate is 5% p.a., estimate the price of the
car after one year.
THINK WRITE
Increase $35 000 by 5%. Future price 105% of $35 000
Future price 105 100 $35 000
Future price $36 750
1
WORKEDExample
1
R
100 n
------------------ +
,
_
n T
The cost of a television set is $800. If the average ination rate is 4% p.a., estimate the cost
of the television after 5 years.
THINK WRITE
Write the values of P, R, T and n. P $800, R 4, T 5, n 1
Write down the compound interest
formula.
A P
A 800
Substitute the values of P, R, T and n. A $800 (1.04)
5
Calculate. A $973.32
1
2 1
R
100 n
------------------ +
,
_
n T
1
4
100 1
------------------ +
,
_
1 5
3
4
2
WORKEDExample
A similar calculation can be made to anticipate the future value of collectable items, such
as stamp collections and memorabilia from special occasions. This type of item increases
in value over time if it becomes rare, and rises at a much greater rate than ination. The
amount by which an item grows in value over time is known as appreciation.
Modelling appreciation with the aid
of a graphics calculator
You have purchased a rare coin that the coin dealer told you should appreciate by
15% each year. You paid $850 for the coin and hope that its value will treble within
the next 10 years. The coin dealer is not sure whether this is the case, so you offer
to produce a graph for him displaying the value of the coin over the next 10 years.
Using a graphics calculator greatly simplies the calculations and will produce a
graph that can be used to determine the value of the coin at any period of time. The
screens displayed and instructions supplied are those of the Casio fx-9860G AU
calculator and TI-Nspire CAS calculator.
1 To draw a graph, press:
5: GRAPH.
Enter the formula:
Y1 = 850(1 + 15 100)^X.
Jenny purchases a rare stamp for $250. It is
anticipated that the value of the stamp will rise
by 20% per year. Calculate the value of the stamp
after 10 years, correct to the nearest $10.
THINK WRITE
Write the values of
P, R, T and n.
P $250
R 20
T 10
n 1
Write down the
compound interest
formula.
A P
A 250
Substitute the values
of P, R, T and n.
A $250 (1.2)
10
Calculate and round
off to the nearest $10.
A $1550
1
2 1
R
100 n
------------------ +
,
_
n T
1
20
100 1
------------------ +
,
_
1 10
3
4
3
WORKEDExample
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MENU
2 To set an appropriate scale, press:
(V-WIN).
Enter the values as shown, and then press
.
3 To draw the graph, press (DRAW).
To trace the values on the graph, press:
(TRCE).
Use the cursor to move along the curve and
nd a value as close to $850 3 as possible.
1 To draw a graph, an appropriate scale must
be set. To do this, press:
HOME c
MENU b
4: Window 4
Complete the elds as shown then select OK.
2 Complete the entry line as:
f1(x) 850 (1 + 15 100)^x.
Then press ENTER .
3 To trace the values on the graph, press:
MENU b
5: Trace 5
1: Graph Trace 1.
Use the cursor to move along the curve and
nd a value as close to $850 3 as
possible.
4 Investigate further to determine the time when the coin will be 4 times its
original value.
5 Prepare a report to the coin dealer explaining how the value of the coin changes
over time. Provide a graph to support your gures.
6 The coin dealer asks you if he could use your graph for values other than $850,
which was the initial value of the coin. Explain how the graph could be used to
determine the time when any sum of money doubles, trebles and so on, as long
as the appreciation rate remains at 15% p.a.
SHIFT
F3
EXE
F6
SHIFT
F1
1 The cost of a yacht is $20 000. If the ination rate is 4% p.a., estimate the cost of the
yacht after one year.
2 For each of the following, estimate the cost of the item after one year, with the given
ination rate.
a A CD player costing $600 with an ination rate of 3% p.a.
b A toaster costing $45 with ination at 7% p.a.
c A loaf of bread costing $3.50 with ination at 6% p.a.
d An airline ticket costing $560 with ination at 3.5% p.a.
e A washing machine costing $925 with ination at 0.8% p.a.
3 An electric guitar is priced at $850 at the beginning of 2009.
a If the ination rate is 3.3% p.a., estimate the cost of the guitar at the beginning of
2010.
b The government predicts ination to fall to 2.7% p.a. in 2010. Estimate the cost of
the guitar at the beginning of 2011.
4 When the Wilson family go shopping, the weekly basket of
groceries costs $112.50. The ination rate is predicted to be
4.8% p.a. for the next year. How much should the Wilsons
budget per week be for groceries for the next year?
5 The cost of a skateboard is $550. If the average ination rate
is predicted to be 3% p.a., estimate the cost of a new
skateboard in 4 years time.
6 The cost of a litre of milk is $1.70. If the ination rate is an
average 4% p.a., estimate the cost of a litre of milk after
10 years.
7 A daily newspaper costs $2.00. With an average ination
rate of 3.4% p.a., estimate the cost of a newspaper after
5 years (to the nearest 5c).
8 If a basket of groceries costs $98.50 in 2009, what would
the estimated cost of the groceries be in 2016 if the average
ination rate for that period is 3.2% p.a.?
1. Ination is the measure of the rate at which prices increase.
2. The ination rate is given as a percentage and is called the Consumer Price
Index.
3. To estimate the cost of an item after one year, we increase the price by the
percentage ination rate.
4. To estimate the cost of an item after several years, we use the compound
interest formula, using the ination rate as the value of R.
5. Rare items such as collectibles and memorabilia increase in value as time goes
on at a rate that is usually greater than ination.
remember
2A
WORKED
Example
1
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SkillSHEET 2.1
Finding a percentage
of a quantity
WORKED
Example
2
9
A bottle of soft drink costs $2.50. If the ination rate is predicted to average 2% p.a.
for the next ve years, the cost of the soft drink in ve years will be:
10 Veronica bought a shirt signed by the Australian cricket team after it won the 2007
World Cup for $200. If the value of the shirt increases by 20% per annum for the next
5 years, calculate the value of the shirt (to the nearest $10).
11 Ken purchased a rare bottle of wine for $350. If the value of the wine is predicted to
increase at 10% per annum, estimate the value of the wine in 20 years (to the nearest
$10).
12 The 1968 Australian 2c piece is very rare. If a coin collector purchased one in 1999
for $400 and the value of the coin increases by 15% p.a., calculate its value in 2012
(to the nearest $10).
Modelling depreciation
An asset is an item that has value to its owner. Many assets such as cars and computers
lose value over time. This is called depreciation.
Consider the case of a new motor vehicle. The value of the car depreciates the
moment that you drive the car away from the showroom. This is because the motor
vehicle is no longer new and if it were sold it would have to be sold as a used car. The
car then continues to lose value steadily each year.
A $2.60 B $2.65 C $2.70 D $2.75 E $2.76
Depreciation of motor vehicles
Choose a make of car and nd out the price for a new vehicle of this make and
model. Then go through the classied advertisements in the newspaper and complete
the table below or look in the RACQ publication The Road Ahead.
Draw a graph that shows the price of this car as it ages.
multiple choice
WORKED
Example
3
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Age of car (years) Price
New (0)
1
2
3
4
5
6
7
8
9
10
There are two types of depreciation, the straight line method and the declining
balance or diminishing value method. Depreciation is a signicant factor in the oper-
ation of a business. The Australian Taxation Ofce (ATO) allows depreciation on items
necessary for the operation of the business as a legitimate tax deduction.
Straight line depreciation
The straight line method is where the asset depreciates by a constant amount each year.
When this type of depreciation is graphed, a straight line occurs and the asset will
reduce to a value of 0.
In such a case, a linear function can be derived that will allow us to calculate the
value of the item at any time. The function can be found using the gradientintercept
method. The initial value of the item (V
o
) will be the vertical intercept and the gradient
will be the negative of the amount that the item depreciates, D, each year. The equation
of this linear function will be:
V V
o
Dt
where V is the present value of the item and t is the age of the asset, in years.
Note that gradients for depreciation will always be negative.
The table below shows the declining value of a computer. Graph the value against time
and write an equation for this function.
Age (years) Value ($)
New (0) 4000
1 3500
2 3000
3 2500
4 2000
5 1500
THINK WRITE
Draw a set of axes with age on the
horizontal axis and value on the
vertical.
Plot each point given by the table.
Join all points to graph the function.
Write the initial value as V
o
and use the
gradient to state D.
V
o
4000, D 500
Write the equation using V V
o
Dt. V V
o
Dt
V 4000 500t
1
1 0 2 3 4 5 6 7 8 9
V
a
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(
$
)
Age (years)
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2
3
4
5
4
WORKEDExample
In the previous worked example, how long does it take for the computer to
depreciate to a value of $0? The computer is said to be written off when it
reaches this value.
Declining balance or diminishing value depreciation
The other method of depreciation used is the declining balance or diminishing value
method of depreciation. Here, the value of the item depreciates each year by a
percentage of its current value. Under such depreciation, the value of the item never
actually becomes zero.
This type of depreciation is an example of exponential decay. A graph depicting the
value over time is non-linear, showing a downward-falling curve which never actually
reaches a zero value.
A graphics calculator can be used to plot the values in the tables in Worked examples 4
and 5. This can check the shapes of the curves. The two variables (age and value) can
be entered as lists. Because no equations are entered, we can not extrapolate values
from the graph beyond the limits of the values in the lists. Later in this chapter we will
explore a graphics calculator technique which will enable us to extrapolate values
from graphs.
The table at right shows the value of a car that is
purchased new for $40 000.
Plot the points on a set of axes and graph
the depreciation of the car. Use the graph to
estimate the value of the car after 10 years.
THINK WRITE
Draw a set of axes with age on the
horizontal axis and value on the
vertical.
Plot the points from the table.
Join the points with a smooth curve.
Estimate the value after 10 years from
the graph you have drawn.
From the graph, the approximate value of the
car after 10 years is $4000.
Age of car
(years) Value ($)
New (0) 40 000
1 32 000
2 25 600
3 20 480
4 16 384
5 13 107
1
1 0 2 3 4 5 6 7 8 910
V
a
l
u
e

(
$
)
Age (years)
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
2
3
4
5
WORKEDExample
With the aid of a graphics calculator, produce a graph showing the relationship between
the age and value of the computer in Worked example 4.
THINK WRITE/DISPLAY
To draw a scatterplot, press:
MENU
2 STAT.
Enter the data for Age in List 1 and
Value in List 2.
To set an appropriate scale, press;
(V-WIN).
Enter the values as shown and then
press .
To set the graph type, press:
(GRPH)
(SET).
Enter the settings as shown and then
press .
To ensure that StatGraph 1 is selected,
press (SEL).
Enter the settings as shown.
To draw the graph, press:
(DRAW)
(TRCE).
To draw a scatterplot of the data, press:
HOME c
Label column A as year and column B
as value. Enter the appropriate data in
these columns.
To select both columns, place the
cursor over the label year, then press:
NavPad
CAPS g
NavPad
.
1
2
SHIFT
F3
EXE
3
F1
F6
EXE
4
F4
5
F6
SHIFT
F1
1
2
6
WORKEDExample
The following questions may be solved with the aid of a graphics calculator.
1 The table below shows the depreciating value of a tractor.
a Draw a graph of the value of the tractor against the age of the tractor.
b Write a function for the value of the tractor.
New (0) 100 000
1 90 000
2 80 000
3 70 000
4 60 000
5 50 000
THINK WRITE/DISPLAY
To draw the scatterplot, press:
MENU b
3: Data 3
6: Quick Graph 6.
To connect the points, press:
MENU b
2: Plot Properties 2
1: Connect Data Points 1.
3
4
1. Depreciation is the loss in the value of an item over time.
2. Depreciation can be of two types:
(a) straight line depreciation the item loses a constant amount of value each year
(b) declining balance or diminishing value depreciation the value of an item
depreciates by a percentage of its value each year.
3. Straight line depreciation can be graphed using a linear function in which the
new value of the item is the vertical intercept and the gradient is the negative of
the annual loss in value.
4. A declining balance or diminishing value depreciation is an example of
exponential decay and is graphed with a smooth curve.
5. A graphics calculator can be used to graph depreciation. Values can be
determined at any point along the straight line or curve.
remember
2B
WORKED
Example
4, 6
2 The table at right shows the depreciating value of
a tow truck.
Draw a graph of value against age and, hence,
write the value as a linear function of age.
3 The function V 50 000 6000A shows the value, V, of a car when it is A years old.
a Draw a graph of this function.
b Use the graph to calculate the value of the car after 5 years.
c After how many years would the car be written off (that is, the value of the car
becomes $0)?
4 A computer is bought new for $6400 and depreciates at the rate of $2000 per year.
a Write a function for the value, V, of the computer against its age, A.
b Draw the graph of this function.
c After how many years does the computer become written off?
5 The table at right shows the declining value of a
new motorscooter.
a Plot the points shown by the table and draw
a graph of the value of the motorscooter
against age.
b Use your graph to estimate the value of the
motorscooter after 8 years.
6 The table at right shows the declining value of
a semi-trailer.
a Plot the points as given in the table and then
draw a curve of best t to graph the
depreciation of the semi-trailer.
b Use your graph to estimate the value of the
semi-trailer after 10 years.
c After what number of years will the value of
the semi-trailer fall below $50 000?
7 a A gymnasium values its equipment at $200 000. Each year the value of the equip-
ment depreciates by 20% of the value of the previous year. Calculate the value of
the equipment after:
i 1 year ii 2 years iii 3 years iv 4 years.
b Plot these points on a set of axes and draw a graph of the value of the equipment
against its age.
New (0) 50 000
1 42 000
2 34 000
3 26 000
4 18 000
5 10 000
WORKED
Example
5, 6
New (0) 20 000
1 15 000
2 11 250
3 8500
4 6250
5 4750
New (0) 600 000
1 420 000
2 295 000
3 205 000
4 145 000
5 100 000
8
Which of the tables below shows a straight line depreciation?
9 A car is bought new for $30 000.
a The straight line method of depreciation sees the car lose $4000 in value each year.
Complete the table below.
b Draw a graph of this depreciation.
A
Age
(years)
Value
($) B
Age
(years)
Value
($) C
Age
(years)
Value
($)
New (0) 4000 New (0) 4000 New (0) 4000
1 3600 1 3600 1 3600
2 3240 2 3200 2 3300
3 2916 3 2800 3 3100
4 2624 4 2400 4 3000
5 2362 5 2000 5 2950
D
Age
(years)
Value
($) E
Age
(years)
Value
($)
New (0) 4000 New (0) 4000
1 3000 1 3500
2 2500 2 3000
3 1500 3 2500
4 1000 4 2000
5 500 5 1000
New (0) 30 000
1
2
3
4
5
multiple choice
c The declining balance or diminishing value method of depreciation sees the value
of the car fall by 20% of the previous years value. Complete the table below.
d On the same set of axes draw a graph of this depreciation.
e After how many years is the car worth more under declining balance or diminishing
value than under straight line depreciation?
We have already seen that the straight line method of depreciation is where the value of
an item depreciates by a constant amount each year.
The depreciated value of an item is called the salvage value, S. The salvage value of
an asset can be calculated using the formula:
S V
o
Dn
where V
o
is the purchase price of the asset, D is the amount of depreciation per period
and n is the total number of periods.
By solving an equation we are able to calculate when the value of an asset falls below
a particular value.
New (0) 30 000
1
2
3
4
5
eBookplus eBookplus
Interactivity:
Reducing balance
depreciation
int-0194
A laundry buys dry-cleaning
equipment for $30 000. The
equipment depreciates at a
rate of $2500 per year.
Calculate the salvage value
of the equipment after
6 years.
THINK WRITE
Write the formula. S V
o
Dn
Substitute the values of V
o
, D and n. $30 000 $2500 6
Calculate the value of S. $15 000
1
2
3
7
WORKEDExample
A graphics calculator can provide the answer to Worked example 8 without the need to
solve an equation.
A plumber purchases equipment for a total of $60 000. The value
of the equipment is depreciated by $7500 per year. When the value
of the equipment falls below $10 000 it should be replaced. Calculate
the number of years after which the equipment should be replaced.
THINK WRITE
o
Dn
Substitute for S, V
o
and D. 10 000 60 000 7500n
Solve the equation to nd the value
of n.
7500n 50 000
n 6
Give a written answer, taking the value
of n up to the next whole number.
The equipment should be replaced after 7 years.
1
2
3
2
3
---
4
8
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 8
int-0901
Use a graphics calculator for the problem in Worked example 8.
Continued over page
THINK WRITE/DISPLAY
To create a table of values, press:
7: TABLE.
Y1 60 000 7500X.
Note: The variable x is the number of
years.
To set the range of the table, press
(SET).
Press .
To display the table of values, press
(TABL). Scroll down to where
the value becomes below $10 000.
Write the solution. The equipment should be replaced after 7 years.
1
MENU
2
F5
EXE
3
F6
4
9
WORKEDExample
1 A car that is purchased for $45 000 depreciates by $5000 each year. Calculate the
salvage value of the car after 5 years.
2 Calculate the salvage value:
a after 5 years of a computer that is purchased
for $5000 and depreciates by $800 per year
b after 7 years of a motorscooter that is purchased
for $25 000 and depreciates by $2100 per year
c after 6 years of a semi-trailer that is purchased
for $750 000 and depreciates by $80 000 per year
d after 2 years of a mobile phone that is purchased
for $225 and depreciates by $40 per year
e after 4 years of a farmers plough that is purchased
for $80 000 and depreciates by $12 000 per year.
3 A bus company buys 15 buses for $475 000 each.
a Calculate the total cost of the eet of buses.
b If each bus depreciates by $25 000 each year, calculate the salvage value of the
eet of buses after 9 years.
THINK WRITE/DISPLAY
To solve an equation, press:
HOME c
1: Calculator 1
MENU b
3: Algebra 3
1: Solve 1.
solve(60 000 7500n 10 000, n).
Then press ENTER .
Write the solution.
Solve S V
o
Dn, for n,
given S 10 000, V
o
60 000 and D 7500
1
2
1. Straight line depreciation occurs when the value of an asset depreciates by a
constant amount each year.
2. The formula to calculate the salvage value, S, of an asset is S V
o
Dn where
V
o
is the purchase price of the asset, D is the amount of depreciation per period
and n is the total number of periods.
3. To calculate a value of V
o
, D or n, we substitute all known values and solve the
equation that is formed.
remember
2C
WORKED
Example
7
4 The price of a new car is $25 000. The value of the car depreciates by $300 each
month. Calculate salvage value of the car after 4 years.
5 An aeroplane is bought by an airline for $60 million. If the aeroplane depreciates by
$4 million each year, calculate when the value of the aeroplane falls below $30 million.
6 Calculate the length of time for each of the following items to depreciate to the value given.
a A computer purchased for $5600 to depreciate to less than $1000 at $900 per year
b An electric guitar purchased for $1200 to depreciate to less than $500 at $150 per year
c An entertainment unit purchased for $6000 to become worthless at $750 per year
d Ofce equipment purchased for $12 000 to depreciate to less than $2500 at $1500
per year
7 A motor vehicle depreciates from $40 000 to $15 000 in 10 years. Assuming that it is
depreciating in a straight line, calculate the annual amount of depreciation.
8 Calculate the annual amount of depreciation in an asset that depreciates:
a from $20 000 to $4000 in 4 years
b from $175 000 to $50 000 in 10 years
c from $430 000 to $299 500 in 9 years.
9 A computer purchased for $3600 is written off in 4 years. Calculate the annual
amount of depreciation.
10 A car that is 5 years old has an insured value of $12 500. If the car is depreciating at
a rate of $2500 per year, calculate its purchase price.
11 Calculate the purchase price of each of the following assets given that:
a after 5 years the value is $50 000 and is depreciating at $12 000 per year
b after 15 years the value is $4000 and is depreciating at $1500 per year
c after 25 years the value is $200 and is depreciating at $50 per year.
12 An asset that depreciates at $6500 per year is written off after 12 years. Calculate the
purchase price of that asset.
Declining balance or diminishing value
method of depreciation
The declining balance or diminishing value method of depreciation occurs when the
value of an asset depreciates by a given percentage each period.
Consider the case of a car purchased new for $30 000, which depreciates at the rate
of 20% p.a. Each year the salvage value of the car is 80% of its value at the end of the
previous year.
After 1 year: S 80% of $30 000
$24 000
After 2 years: S 80% of $24 000
$19 200
$15 360
WORKED
Example
8, 9
eBookplus eBookplus
Digital doc:
WorkSHEET 2.1
The salvage value under a declining balance can be calculated using the formula:
S V
o
where S is the salvage value, V
o
is the purchase price, R is the annual percentage
depreciation and T is the number of years. Note the similarity to the compound interest
formula with a minus sign in place of a plus sign (because the value is decreasing). The
value of n is 1 since depreciation is usually calculated yearly.
To calculate the amount by which the asset has depreciated, we subtract the salvage
value from the purchase price.
A small truck that was purchased for $45 000 depreciates at a rate of 25% p.a. By
calculating the value at the end of each year, nd the salvage value of the truck after 4 years.
THINK WRITE
The salvage value at the end of each
year will be 75% of its value at the end
of the previous year.
Find the value after 1 year by
calculating 75% of $45 000.
After 1 year: S 75% of $45 000
$33 750
Find the value after 2 years by
calculating 75% of $33 750.
$25 312.50
calculating 75% of $25 312.50.
After 3 years: S 75% of $25 312.50
$18 984.38
calculating 75% of $18 984.38.
After 4 years: S 75% of $18 984.38
$14 238.28
1
2
3
4
5
10
WORKEDExample
1
R
100
---------
,
_
T
The purchase price of a yacht is $15 000. The value of the
yacht depreciates by 10% p.a. Calculate (correct to the
nearest $1) the salvage value of the yacht after 8 years.
THINK WRITE
o
Substitute values for V
o
, R and T. 15 000
$15 000 0.9
8
Calculate the salvage value. $6457.00
1
1
R
100
---------
,
_
T
2
1
10
100
---------
,
_
8
3
11
WORKEDExample
Declining balance or
diminishing value method
of depreciation
1 The purchase price of a forklift is $50 000. The value of the forklift depreciates by
20% p.a. By calculating the value of the forklift at the end of each year, nd the
salvage value of the forklift after 4 years.
2 A trailer is purchased for $5000. The value of the trailer depreciates by 15% each
year. By calculating the value of the trailer at the end of each year, calculate:
a the salvage value of the trailer after 5 years (to the nearest $10)
b the amount by which the trailer depreciates:
i in the rst year ii in the fth year.
The purchase price of a computer for a music studio is
$40 000. The computer depreciates by 12% p.a.
Calculate the amount by which the computer
depreciates in 10 years.
THINK WRITE
o
Substitute the value of V
o
, R and T. 40 000
$40 000 0.88
10
Calculate the value of S. $11 140.04
Calculate the amount of depreciation by
subtracting the salvage value from the
purchase price.
Depreciation $40 000 $11 140.04
$28 859.96
1
1
R
100
---------
,
_
T
2
1
12
100
---------
,
_
10
3
4
12
WORKEDExample
1. The declining balance or diminishing value method of depreciation occurs
when the value of an asset depreciates by a xed percentage each year.
2. The salvage value of an asset can be calculated by subtracting the percentage
depreciation each year.
3. The salvage value can be calculated using the formula S V
o
.
4. To calculate the amount of depreciation, the salvage value should be subtracted
from the purchase price.
1
R
100
---------
,
_
T
remember
2D
WORKED
Example
10
3 A company purchases a mainframe computer for $3000000. The value of the computer
depreciates by 15% p.a. By calculating the value at the end of each year, nd the number
of years that it takes for the salvage value of the mainframe to fall below $1000000.
4 Use the declining balance depreciation formula to calculate the salvage value after
7 years of a power generator purchased for $800 000 that depreciates at a rate of
10% p.a. (Give your answer correct to the nearest $1000.)
5 Calculate the salvage value of an asset (correct to the nearest $100) with a purchase
price of:
a $10 000 that depreciates at 10% p.a. for 5 years
b $250 000 that depreciates at 15% p.a. for 8 years
c $5000 that depreciates at 25% p.a. for 5 years
d $2.2 million that depreciates at 30% p.a. for 10 years
e $50 000 that depreciates at 40% p.a. for 5 years.
6 A plumber has tools and equipment valued at $18 000. If the value of the equipment
depreciates by 30% each year, calculate the value of the equipment after 3 years.
7 A yacht is valued at $950 000. The value of the yacht depreciates by 22% p.a.
Calculate the amount that the yacht will depreciate in value over the rst 5 years
(correct to the nearest $1000).
8 A new car is purchased for $35 000. The owner plans to keep the car for 5 years then
trade the car in on another new car. The estimate is that the value of the car will
depreciate by 16% p.a. Calculate:
a the amount the owner can expect as a trade-in for the car in 5 years (correct to the
nearest $100)
b the amount by which the car will depreciate in 5 years.
9
A shop owner purchases ttings for her store that cost a total of $120 000. Three years
later, the shop owner is asked to value the ttings for insurance. If the shop owner
allows for depreciation of 15% on the ttings, which of the following calculations
will give the correct estimate of their value?
A 120 000 0.85
3
B 120 000 0.15
3
C 120 000 1.15
3
D 120 000 0.55
E 120 000 0.45
10
A computer purchased for $3000 will depreciate by 25% p.a. The salvage value of the
computer after 4 years will be closest to:
A $0 B $10 C $950 D $1000 E $2000
11 An electrician purchases tools of trade for a total of $8000. Each year the electrician
is entitled to a tax deduction for the depreciation of this equipment. If the rate of
depreciation allowed is 33% p.a., calculate:
a the value of the equipment at the end of one year (correct to the nearest $1)
b the tax deduction allowed in the rst year
c the value of the equipment at the end of two years (correct to the nearest $1)
d the tax deduction allowed in the second year.
12 An accountant purchased a computer for $6000. The value of the computer depreci-
ates by 33% p.a. When the value of the computer falls below $1000, it is written off
and a new one is purchased. How many years will it take for the computer to be
written off?
WORKED
Example
11
WORKED
Example
12
multiple choice
multiple choice
1 The price of a new DVD player is $1250. The DVD player will depreciate under
straight line depreciation at a rate of $200 per year. Calculate the value of the
DVD player after 3 years.
2 An asset that was valued at $39 000 when new depreciates to $22 550 in 7 years.
Calculate the annual amount of depreciation under straight line depreciation.
3 A computer that is purchased new for $9000 depreciates at a rate of $1350 per
year. Calculate the length of time before the computer is written off.
4 A car dealer values a used car at $7000. If the car is 8 years old and the rate of
depreciation is $1750 per year, calculate the value of the car when new.
5 Write the formula for depreciation under the declining balance method.
6 A truck is valued new at $50 000 and depreciates at a rate of 32% p.a. Calculate
the value of the truck after 5 years (correct to the nearest $50).
7 An asset that has a purchase price of $400 000 depreciates at a rate of 45% p.a.
Calculate the assets value after 6 years (correct to the nearest $1000).
8 For the asset in question 7, calculate the amount by which it has depreciated in
6 years.
9 Ofce equipment valued at $250 000 depreciates at a rate of $15% p.a. Calculate
the amount by which it depreciates in the rst year.
10 Calculate the length of time it will take for the salvage value of the ofce equip-
ment in question 9 to fall below $20 000.
Rates of depreciation
In the previous investigation you chose a make and model of car and researched the
salvage value of this car after each year.
1 Calculate the percentage depreciation for each year.
2 Calculate if this percentage rate is approximately the same each year.
3 Using the average annual depreciation, calculate a table of salvage values for
the rst 10 years of the cars life.
4 Draw a graph showing the depreciating value of the car.
5 Some people claim that it is best to trade your car in on a new model every
three years. With reference to your gures and graph, express your views on
this statement.
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
1
Depreciation tables
The following computer application will prepare a table that will show the depreciated
value of an asset with a purchase price of $1 over various periods of time and various
rates of depreciation.
Depreciation table
1 Open a new spreadsheet and type in the headings shown.
2 In cell B3 enter the formula =(1-B$2)^$A3.
3 Highlight the range of cells B3 to K12. Select the Edit function, and then use
(a) the Fill and (b) the Right and Fill and Down functions to copy the formula
throughout the table.
4 The table that you now have should have the values shown in the table.
5 Use the spreadsheets graphing facility to draw a depreciation graph for each of
the depreciation rates shown in the table.
6 Print out a copy of the graph for one of these rates.
The table produced shows the depreciated value of $1 and can be used to make
calculations about depreciation.
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
Time
(years)
Rate of depreciation (per annum)
5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
1 0.9500 0.9000 0.8500 0.8000 0.7500 0.7000 0.6500 0.6000 0.5500 0.5000
2 0.9025 0.8100 0.7225 0.6400 0.5625 0.4900 0.4225 0.3600 0.3025 0.2500
3 0.8574 0.7290 0.6141 0.5120 0.4219 0.3430 0.2746 0.2160 0.1664 0.1250
4 0.8145 0.6561 0.5220 0.4096 0.3164 0.2401 0.1785 0.1296 0.0915 0.0625
5 0.7738 0.5905 0.4437 0.3277 0.2373 0.1681 0.1160 0.0778 0.0503 0.0313
6 0.7351 0.5314 0.3771 0.2621 0.1780 0.1176 0.0754 0.0467 0.0277 0.0156
7 0.6983 0.4783 0.3206 0.2097 0.1335 0.0824 0.0490 0.0280 0.0152 0.0078
8 0.6634 0.4305 0.2725 0.1678 0.1001 0.0576 0.0319 0.0168 0.0084 0.0039
9 0.6302 0.3874 0.2316 0.1342 0.0751 0.0404 0.0207 0.0101 0.0046 0.0020
10 0.5987 0.3487 0.1969 0.1074 0.0563 0.0282 0.0135 0.0060 0.0025 0.0010
The computer application on page 78 will produce a general table for a declining balance
or diminishing value depreciation. We should be able to use the formula to create a table
and graph showing the salvage value of an asset under both straight line and diminishing
value depreciation.
An item is purchased for $500 and depreciates at a rate of 15% p.a. Use the depreciation
table on page 78 to calculate the value of the item after 4 years.
THINK WRITE
Look up the table to nd the depreciated
value of $1 at 15% p.a. for 4 years.
Multiply the depreciated value of $1 by
$500.
Depreciated value 0.5220 $500
$261
1
2
13
WORKEDExample
A car is purchased new for $20 000.
The depreciation can be calculated
under straight line depreciation at
$2500 per year and under diminishing
value at 20% p.a.
a Complete the table at right.
(Give all values to the nearest $1.)
b Draw a graph of both the straight
line and diminishing value
depreciation and use the graph to
show the point at which the
straight line value of the car falls
below the diminishing value.
THINK WRITE
a Copy the table.
Complete the straight line column by
subtracting $2500 from the previous
years value.
Complete the diminishing value by
multiplying the previous years value
by 0.8.
Continued over page
Age of car
(years)
Straight line
value ($)
Diminishing
value ($)
New (0) 20 000 20 000
1
2
3
4
5
6
7
8
1
2
3
a
Age of car
(years)
Straight line
value ($)
Diminishing
value ($)
New (0) 20 000 20 000
1 17 500 16 000
2 15 000 12 800
3 12 500 10 240
4 10 000 8192
5 7500 6554
6 5000 5243
7 2500 4194
8 0 3355
14
WORKEDExample
THINK WRITE
b Plot the points generated by the
table.
b
Join the points for the straight line
depreciation with a straight line.
Join the points for the diminishing
value depreciation with a smooth
curve.
The graph shows the straight line
going below the curve after 6 years.
The straight line depreciation becomes less
than the diminishing value depreciation after
6 years.
1
1 0 (New) 2 3 4 5 6 7 8
V
a
l
u
e

(
$
)
Age (years)
Straight line
value
Diminishing
value
25 000
20 000
15 000
10 000
5 000
0
2
3
4
Use a graphics calculator to solve Worked example 14.
THINK WRITE/DISPLAY
a To create a table of values, press:
7: TABLE
.
Enter the two formulas as:
Y1 20 000 2500X
Y2 20 000(1 20 100)^X.
a
To set the range of x, press
(SET).
To display the table, press
(TABL).
1
MENU
EXE
2
F5
3
F6
15
WORKEDExample
THINK WRITE/DISPLAY
b To set appropriate window
settings, press:
5: GRAPH.
The functions appear on the
screen. Press:
(V-WIN).
b
To display the graph, press
(DRAW).
To nd the points of intersection,
press:
(G-SLV)
(ISCT).
The rst point of intersection is
displayed, (0, 20 000).
To show the second point of
intersection, press the right
arrow.
Write the solution. The straight line depreciation becomes less than
the diminishing value depreciation after 6 years.
a To create a table of values using a
spreadsheet, press:
HOME c
Label column A as year,
column B as slvalue and
column C as dimvalue. Enter
the values from 0 to 8 in
column A.
In the column B header cell
enter the formula as:
20 000 2500 year.
Then press ENTER .
In the column C header cell
enter the formula as:
20 000 (1 20 100)^year.
Then press ENTER .
a
Continued over page
1
MENU
SHIFT
F3
2
F6
SHIFT
F5
F5
3
Depreciation is an allowable tax deduction for people in many occupations. A tax
deduction for depreciation is allowed when equipment used in earning an income
depreciates in value and will eventually need replacing. Depending on the equipment
and the occupation, either straight line or diminishing value depreciation may be
used.
Under diminishing value depreciation, when the salvage value falls below a certain
point the equipment may be written off. This means that the entire remaining balance
can be claimed as a tax deduction and as such is considered worthless. From this point
on, no further tax deductions can be claimed for this equipment. A visit to the Australian
Taxation Ofces website provides more detailed information on this subject.
THINK WRITE/DISPLAY
b To draw graphs of the Straight
Line Depreciation and the
Diminishing Value Depreciation,
press:
HOME c
To adjust window settings, press:
MENU b
4: Window 4
Enter the values as shown and
then select OK.
b
f1(x) 20 000 2500 x
f2(x) 20 000(1 20 100)^x.
Press ENTER after each
entry.
To nd the intersection point of
these two graphs, press:
MENU b
6: Points & Lines 6
Move the cursor close to the
intersection point. The cursor
changes to a pointing nger.
Press ENTER twice and the
coordinates of the intersection
are displayed.
Write the solution. The straight line depreciation becomes less than
the diminishing value depreciation after 6 years.
1
2
3
4
Comparing straight line depreciation
and diminishing value depreciation
using a spreadsheet
Let us look at a solution to Worked example 14 using a spreadsheet. The value of
the new car is $20 000. Depreciation using the straight line method is $2500 per
year. Depreciation using the diminishing value method is 20% p.a. Let us draw up
a spreadsheet similar to the one following.
1 Start by entering the main heading in cell A1 and the side headings in cells
A3, A4 and A5.
2 Enter the new value, 20 000, in cell B3 and format it as currency with no
decimal places.
3 Enter the value 2500 in cell B4 and format as currency with no decimal places.
4 Enter the numeric value of 20 in cell B5.
5 Head up the three columns in row 7.
6 In cell position A8, start the years by entering 0.
7 In cell A9, enter the formula =A8+1. Copy this formula down to row 16.
8 In cell B8, enter the formula =$B$3-$B$4*A8 (the formula for straight line
depreciation). Copy this formula down to cell B16.
9 The diminishing value formula to be entered into cell C8 is
=$B$3*(1-$B$5/100)Â8. Copy this formula down to cell C16.
(Continued)
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10 Check that all your gures agree with those in the spreadsheet above. Notice
that they are the same as those in the table of Worked example 14.
11 Use the graphing facility of the spreadsheet to produce graphs similar to the
ones shown.
12 From the table and the graphs it is evident that a critical point occurs around
the 6-year mark. This is consistent with the graph shown in the worked
example.
13 Try changing values in cells B3, B4 and B5. Notice how the spreadsheet
adjusts.
14 Save your spreadsheet.
A builder has tools of trade that are purchased new for $14 000. He is allowed a
tax deduction of 33% p.a. for depreciation of this equipment. When the salvage
value of the equipment falls below $3000, the electrician is allowed to write the
equipment off on the next years return. Complete the depreciation table below.
(Use whole dollars only.)
Years Salvage value ($) Tax deduction ($)
1
2
3
4
5
THINK WRITE
Calculate the salvage value by
by 0.67.
Calculate the tax deduction by
by 0.33.
When the salvage value is less than
$3000, claim the entire amount as a tax
deduction.
1
Year
Salvage value
($)
Tax deduction
($)
1 9380 4620
2 6285 3095
3 4211 2074
4 2821 1390
5 0 2821
2
3
16
WORKEDExample
1. Graphs can be drawn to compare the salvage value of an asset under different
rates of depreciation, or to compare diminishing value and straight line
depreciation.
2. The amount by which an asset depreciates can, in many cases, be claimed as a
tax deduction.
remember
Depreciation tables
1 Use the table of depreciated values of $1 to calculate:
a the value of a computer purchased for $5000 after 5 years, given that it depreciates
at 20% p.a.
b the value of a car after 8 years with an initial value of $35 000, given that it
depreciates at 15% p.a.
c the value of a boat with an initial value of $100 000 after 10 years, given that it
depreciates at 10% p.a.
2 A taxi owner purchases a new taxi for $40 000. The taxi depreciates under straight
line depreciation at $5000 per year and under diminishing value depreciation at
20% p.a.
a Copy and complete the table below. Give all values to the nearest $100.
b Draw a graph of the salvage value of the taxi under both methods of depreciation.
c State when the value under straight line depreciation becomes less than under
diminishing value depreciation.
3 A company has ofce equipment that is valued at $100 000. The value of the equipment
can be depreciated at $10 000 each year or by 15% p.a.
a Draw a table that will show the salvage value of the ofce equipment for the rst
ten years. (Give all values correct to the nearest $50.)
b Draw a graph of the depreciating value of the equipment under both methods of
depreciation.
4 A computer purchased new for $4400 can be depreciated at either 20% p.a. or 35% p.a.
Draw a table and a graph that compare the salvage value of the computer at each rate of
depreciation.
Age of car
(years) Straight line value ($) Diminishing value ($)
New (0) 40 000 40 000
1
2
3
4
5
6
7
8
2E
WORKED
Example
13
WORKED
Example
14, 15
eBookplus eBookplus
Digital docs:
SkillSHEET 2.2
Converting
percentages to
decimals
SkillSHEET 2.3
Increase or
decrease a
percentage
5 A teacher purchases a laptop
computer for $6500. A tax
deduction for depreciation of the
computer is allowed at the rate of
33% p.a. When the value of the
computer falls below $1000, the
computer can be written off. Copy
and complete the table at right.
(Give all values correct to the
nearest $1.)
6 A plumber purchases a work van
for $45 000. The van can be
depreciated at a rate of 25% p.a.
for tax purposes and the van can
be written off at the end of 8 years.
Copy and complete the depreciation
schedule at right. (Give all answers
correct to the nearest $1.)
7 A truck is purchased for $250 000. The truck can be depreciated at the rate of $25 000
each year or over 10 years at 20% p.a.
a Copy and complete the table
at right. (Give all values
correct to the nearest $1.)
b Draw a graph of the
depreciating value of the
truck under both methods of
depreciation.
c Complete a depreciation
schedule for each method of
calculation.
WORKED
Example
16
Year
Salvage value
($)
Tax deduction
($)
1
2
3
4
5
6
Year
Salvage value
($)
Tax deduction
($)
1
2
3
4
5
6
7
8
Age of
truck
(years)
Straight line
value ($)
Diminishing
value ($)
New (0) 250 000 250 000
1
2
3
4
5
6
7
8
9
10
8 Leilay is a cinematographer and on 1 March purchases a camera for work purposes.
The cost of the camera is $40 000 and for tax purposes the camera depreciates at the
rate of 25% p.a.
a Calculate the amount that the camera will depreciate in the rst year.
b The nancial year ends on 30 June. For what fraction of the nancial year did
Leilay own the camera?
c Leilay is allowed a tax deduction for depreciation of her camera. Calculate the
amount of tax deduction that Leilay is allowed for the nancial year ending on
30 June.
9 Calculate the amount of depreciation
on each of the following assets:
a a tractor with an initial value of
$80 000 that depreciates at
15% p.a. for 3 months
b a bicycle with an initial value of
$600 that depreciates at 25% p.a.
for 6 months
c ofce furniture with an initial
value of $8000 that depreciates at
30% p.a. for 8 months
d a photocopier with an initial value
of $2500 that depreciates at
40% p.a. for 9 months.
Future and present value
of an annuity
An annuity is a form of investment involving regular periodic contributions to an
account. On such an investment, interest compounds at the end of each period and the
next contribution to the account is then made.
Superannuation is a common example of an annuity. Here, people invest in a fund on
a regular basis, the interest on the investment compounds, while the principal is added
to for each period. The annuity is usually set aside for a persons entire working life
and is used to fund retirement. It may also be used to fund a long-term goal, such as a
trip in 10 years time.
To understand the growth of an annuity, we rst need to revise compound interest.
The compound interest formula is:
A P
where A is the amount that an investment will become, P is the principal, R is the
interest rate per annum, n is the number of interest periods per year and T is the
time in years.
1
R
100 n
------------------ +
,
_
n T
An annuity takes the form of a sum of compound interest investments. Consider the
case of a person who invests $1000 at 10% p.a. at the end of each year for ve years.
To calculate this, we would need to calculate the value of the rst $1000 which is
invested for four years, the second $1000 which is invested for three years, the third
$1000 which is invested for two years, the fourth $1000 which is invested for one year
and the last $1000 which is added to the investment.
Calculate the value of a $5000 investment made at 8% p.a. for 4 years, with interest
THINK WRITE
Write the formula. A P
Substitute values for P, R, n and T. 5000
$5000 (1.08)
4
Calculate the value of A. $6802.44
1
1
R
100 n
------------------ +
,
_
n T
2
1
8
100 1
------------------ +
,
_
1 4
3
17
WORKEDExample
Calculate the value of an annuity in which $1000 is invested each year at 10% p.a. for 5 years.
THINK WRITE
The value of n is 1 in all cases. n 1
Use the compound interest formula to
calculate the amount to which the rst
$1000 will grow.
A P
$1000 1.1
4
$1464.10
calculate the amount to which the
second $1000 will grow.
A P
$1000 1.1
3
$1331.00
calculate the amount to which the third
$1000 will grow.
A P
$1000 1.1
2
$1210.00
calculate the amount to which the
fourth $1000 will grow.
A P
$1000 1.1
$1100.00
Find the total of the separate $1000
investments, remembering to add the
nal $1000.
Total value $1464.10 + $1331.00 + $1210.00
+ $1100.00 + $1000
$6105.10
1
2
1
R
100
--------- +
,
_
T
3
1
R
100
--------- +
,
_
T
4
1
R
100
--------- +
,
_
T
5
1
R
100
--------- +
,
_
T
6
18
WORKEDExample
Annuity calculations
The amount to which an annuity grows is called the future value of an annuity and
can be calculated using the formula:
A = M
M is the amount of each periodical investment made at the end of the period; r is the
interest rate per period expressed as a decimal and n is the number of deposits.
The present value of an annuity, P, can be calculated using the formula:
P = M
This formula allows us to calculate the single sum needed to be invested to give the
same nancial result as an annuity where we are given the size of each contribution.
The nancial calculator section of the later model graphics calculators makes
short work of annuity calculations. Let us use the Casio fx-9860G AU calculator and
TI-Nspire CAS calculator to demonstrate this facility.
1 r + ( )
n
1
r
----------------------------

, ,

1 r + ( )
n
1
r 1 r + ( )
n
----------------------------

, ,

Christina invests $500 into a fund every 6 months at 9% p.a. interest, compounding
six-monthly for 10 years. Calculate the future value of the annuity after 10 years.
THINK WRITE/DISPLAY
Enter the nancial section of the calculator. For the Casio fx-9860G AU
Enter the following data as shown below right.
n 10 2 (Interest is calculated
twice a year for 10 years.)
I% 9 (Interest rate is 9% p.a.)
PV 0 (No deposit is made
initially only regular
6-monthly payments.)
PMT 500 (Regular $500
payments are made.)
FV 0 (This value will be
calculated.)
PpY or P/Y 2 (Regular payments are
made twice a year.)
CpY or C/Y 2 (Interest is calculated
twice a year.)
To enter the data as shown, press:
C: TVM
(CMPD).
Press to move between elds.
To calculate the future value of the
annuity, press (FV).
The future value of annuity after
10 years is $15 685.71.
Continued over page
1
2
MENU
F2
EXE
F5
19
WORKEDExample
THINK WRITE/DISPLAY
Solve for FV. Take the cursor to the FV line
and press (FV) for the Casio fx-9860G
AU calculator and press ENTER on the
TI-Nspire CAS calculator.
To enter the data as shown, press:
HOME c
1: Calculator 1
MENU b
8: Finance 8
1: Finance Solver 1.
Press Tab e to move between elds.
Press the Tab e key to return to the
FV line, then press ENTER .
Write the answer. The future value of the annuity after
10 years is $15 685.71.
3
F5
4
Vicky has the goal of saving $10 000 in the next ve years. The best interest rate that she
can obtain is 8% p.a., with interest compounded annually. Calculate the amount of each
annual contribution that Vicky must make.
THINK WRITE/DISPLAY
Enter the following data using the methods
described for the previous worked example.
n 5 1 (Interest is calculated once a year
for 5 years.)
I% 8 (Interest rate is 8% p.a.)
PV 0 (No deposit is made initially.)
1
20
WORKEDExample
THINK WRITE/DISPLAY
PMT 0 (This is the unknown
value which will be
calculated.)
FV 10 000 (The future value is
$10 000.)
PpY or P/Y 1 (Vicky makes one
payment per year.)
CpY or C/Y 1 (Interest is calculated
yearly.)
Solve for PMT. Take the cursor to the
PMT line and press (PMT) for
the Casio fx-9860G AU calculator.
For the TI-Nspire CAS calculator,
press ENTER .
Write the answer. A payment of $1704.56 is required as the annual
contribution.
Annuity calculator
Use the Annuity calculator in your eBookPLUS and download the spreadsheet.
The spreadsheet will show you the growth of an annuity where $1000 is
invested at the end of each year for 20 years, at the rate of 8% p.a. interest,
compounding annually.
1 The spreadsheet shows that after 20 years the value of this investment
is $45 761.96. Over the page is the growth of the annuity after each deposit
is made. This will allow you to see the growth for up to 30 deposits. You
can use Edit, then Fill and Down functions on the spreadsheet to see
further.
2 Browse the spreadsheet, taking note of the formulas in the various cells.
(Continued)
2
F4
3
eBookplus eBookplus
Digital doc:
Spreadsheet
200 Annuity calculator
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Annuity values using tables
To compare an annuity with a single sum investment, we need to use the present
value of the annuity. The present value of an annuity is the single sum of money
which, invested on the same terms as the annuity, will produce the same nancial
result.
Problems associated with annuities can be simplied by creating a table that will
show either the future value or present value of an annuity of $1 invested per interest
period.
3 Click on the Tab Chart 1. This is a line graph that shows the growth of the
annuity for up to 30 deposits.
4 Change the size of the deposit to $500 and the compounding periods to 2. This
will show how much benet can be achieved by reducing the compounding
period.
Future value of $1
Consider $1 is invested into an annuity each interest period. The table we are going
to construct on a spreadsheet shows the future value of that $1.
1 Open a new spreadsheet.
2 Type in the headings shown on the following page.
3 In cell B4 enter the formula =((1+B$3)^$A4-1)/B$3. (This is the future value
formula.) Format the cell, correct to 4 decimal places.
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4 Highlight the range of cells B3 to K13. Choose Edit and then the Fill and Down
functions followed by the Fill and Right functions to copy the formula to all
other cells in this range.
5 Save the spreadsheet as Future value of $1.
This completes the table. The table shows the future value of an annuity of $1
invested for up to 10 interest periods at up to 10% per interest period. You can
extend the spreadsheet further for other interest rates and longer investment
periods.
The above table is the set of future values of $1 invested into an annuity. This is the
table you should have obtained.
A table such as this can be used to nd the value of an annuity by multiplying
the amount of the annuity by the future value of $1.
Future values of $1
Period
Interest rate (per period)
1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
2 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000
3 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100
4 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410
5 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051
6 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156
7 7.2135 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872
8 8.2857 8.5380 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 11.4359
9 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 12.4876 13.0210 13.5795
10 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374
Just as we have a table for the future value of an annuity, we can create a table for the
present value of an annuity.
Present value table
The table we are about to make on a spreadsheet shows the present value of an
annuity of $1 invested per interest period.
1 Open a new spreadsheet.
2 Enter the headings shown in the spreadsheet.
3 In cell B4 type the formula =((1+B$3)^$A4-1)/(B$3*(1+B$3)^$A4).
4 Drag from cell B4 to K13 and then use the Edit and then the Fill and Down and
the Fill and Right functions to copy this formula to the remaining cells in your
table.
5 Save your spreadsheet as Present value of $1.
The table created shows the present value of an annuity of $1 per interest period
for up to 10% per interest period and for up to 10 interest periods.
Use the previous table to nd the future value of an annuity where $1500 is deposited at the
end of each year into an account that pays 7% p.a. interest, compounded annually for 9 years.
THINK WRITE
Look up the future value of $1 at
7% p.a. for 9 years.
Future value $1500 11.9780
Multiply this value by 1500. $17 967
1
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The result that you should have obtained is shown below.
This table can be used in the same way as the future value table.
Present values of $1
Period
Interest rate (per period)
1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091
2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355
3 2.9410 2.8839 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869
4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699
5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908
6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553
7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684
8 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349
9 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590
10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446
Liam invests $750 per year into an annuity at 6% per annum for 8 years, with interest
compounded annually. Use the above table to calculate the present value of Liams annuity.
THINK WRITE
Use the table to nd the present value of a $1
annuity at 6% for 8 interest periods.
Multiply this value by 750. Present value $750 6.2098
$4657.35
1
2
22
WORKEDExample
1. The compound interest formula is A P , where A is the
amount that the investment will grow to, R is the interest rate per year, n is the
number of periods per year and T is the time of the investment in years.
2. An annuity is a form of investment where periodical equal contributions are
made to an account, with interest compounding at the end of each period.
3. The value of an annuity is calculated by adding the value of each amount
contributed as a separate compound interest investment.
4. A table of future values shows the future value of an annuity where $1 is
invested per interest period.
5. A table of present values shows the present value of an annuity where $1 is
invested per interest period.
6. A table of present or future values can be used to compare investments and
determine which will give the greater nancial return.
1
R
100 n
------------------ +
,
_
n T
remember
Future and present value of
an annuity
1 Calculate the value after 5 years of an investment of $4000 at 12% p.a., with interest
2 Calculate the value to which each of the following compound interest investments
will grow.
a $5000 at 6% p.a. for 5 years, with interest calculated annually
b $12 000 at 12% p.a. for 3 years, with interest calculated annually
c $4500 at 8% p.a. for 4 years, with interest compounded six-monthly
d $3000 at 9.6% p.a. for 3 years, with interest compounded six-monthly
e $15 000 at 8.4% p.a. for 2 years, with interest compounded quarterly
f $2950 at 6% p.a. for 3 years, with interest compounded monthly
3 At the end of each year for four years Rodney invests $1000 into an investment fund
that pays 7.5% p.a. interest, compounded annually. By calculating each investment of
$1000 separately, use the compound interest formula to calculate the future value of
Rodneys investment after four years.
4 At the end of every six months Jason invests $800 into a retirement fund which pays
interest at 6% p.a., with interest compounded six-monthly. Jason does this for
25 years. Calculate the future value of Jasons annuity after 25 years.
5 Calculate the future value of each of the following annuities on maturity.
a $400 invested at the end of every six months for 12 years at 12% p.a. with interest
compounded six-monthly
b $1000 invested at the end of every quarter for 5 years at 8% p.a. with interest com-
pounded every quarter
c $2500 invested at the end of each quarter at 7.2% p.a. for 4 years with interest
compounded quarterly
d $1000 invested at the end of every month for 5 years at 6% p.a. with interest com-
pounded monthly
6
Tracey invests $500 into a fund at the end of each year for 20 years. The fund pays
12% p.a. interest, compounded annually. The total amount of interest that Tracey
earns on this fund investment is:
A $1200 B $4323.15 C $4823.23 D $26 026.22 E $36 026.22
7 Thomas has the goal of saving $400 000 for his retirement in 25 years. If the best
interest rate that Thomas can obtain is 10% p.a., with interest compounded annu-
ally, calculate the amount of each annual contribution that Thomas will need to
make.
8 Calculate the amount of each annual contribution needed to obtain each of the
following amounts.
a $25 000 in 5 years at 5% p.a., with interest compounded annually
b $100 000 in 10 years at 7.5% p.a., with interest compounded annually
c $500 000 in 40 years at 8% p.a., with interest compounded annually
2F
WORKED
Example
17
WORKED
Example
18
WORKED
Example
19
multiple choice
WORKED
Example
20
9 Use the table of future values on page 93 to determine the future value of an annuity
of $800 invested per year for 5 years at 9% p.a., with interest compounded annually.
10 Use the table of future values on page 93 to determine the future value of each of the
following annuities.
a $400 invested per year for 3 years at 10% p.a., with interest compounded annually
b $2250 invested per year for 8 years at 8% p.a., with interest compounded annually
c $625 invested per year for 10 years at 4% p.a., with interest compounded annually
d $7500 invested per year for 7 years at 6% p.a., with interest compounded annually
11 Samantha invests $500 every 6 months for 5 years into an annuity at 8% p.a., with
interest compounded every 6 months.
a What is the interest rate per interest period?
b How many interest periods are there in Samanthas annuity?
c Use the table on page 93 to calculate the future value of Samanthas annuity.
12 Use the table on page 93 to calculate the future value of each of the following
annuities.
a $400 invested every 6 months for 4 years at 14% p.a., with interest compounded
six-monthly
b $600 invested every 3 months for 2 years at 12% p.a., with interest compounded
quarterly
c $100 invested every month for 5 years at 10% p.a., with interest compounded six-
monthly
13 Use the table of future values to determine whether
an annuity at 5% p.a. for 6 years or an annuity at
6% p.a. for 5 years will produce the greatest nancial
outcome. Explain your answer.
14
Use the table of future values to determine which
of the following annuities will have the
greatest nancial outcome.
A 5% p.a. for 9 years, with interest compounded
annually
B 6% p.a. for 8 years, with interest compounded
annually
C 8% p.a. for 6 years, with interest compounded
annually
D 7% p.a. for 7 years, with interest compounded
annually
E 10% p.a. for 5 years, with interest compounded six-monthly
15 Use the table of present values on page 95 to determine the present value of an annuity
of $1250 per year for 8 years invested at 9% p.a.
16 Use the table of present values to determine the present value of each of the following
annuities.
a $450 per year for 5 years at 7% p.a., with interest compounded annually
b $2000 per year for 10 years at 10% p.a., with interest compounded annually
c $850 per year for 6 years at 4% p.a., with interest compounded annually
d $3000 per year for 8 years at 9% p.a., with interest compounded annually
WORKED
Example
21
multiple choice
WORKED
Example
22
eBookplus eBookplus
Digital doc:
WorkSHEET 2.2
98 M a t h s Q u e s t M a t h s A Ye a r 1 2 f o r Q u e e n s l a n d 98 M a t h s Q u e s t M a t h s A Ye a r 1 2 f o r Q u e e n s l a n d
1 Calculate the amount of interest earned on $10 000 invested for 10 years at 10% p.a.,
with interest compounding annually.
2 Calculate the future value of an annuity of $1000 invested every year for 10 years at
10% p.a., with interest compounding annually.
3 Calculate the future value of an annuity where $200 is invested each month for
5 years at 5% p.a., with interest compounding quarterly.
4 Calculate the amount of each annual contribution to an annuity that will have a future
value of $15 000 if the investment is for 8 years at 7.5% p.a., with interest
compounding annually.
5 Calculate the amount of each annual contribution to an annuity that will have a future
value of $500 000 in 25 years when invested at 10% p.a., with interest compounding
annually.
6 Calculate the present value of an annuity that will have a future value of $50 000 in
10 years at 10% p.a., with interest compounding annually.
7 Calculate the present value of an annuity that will have a future value of $1 000 000 in
40 years at 10% p.a., with interest compounding annually.
8 Calculate the present value of an annuity where annual contributions of $1000 are
made at 10% p.a., with interest compounding annually for 20 years.
9 Use the table on page 93 to nd the future value of $1 invested at 16% p.a. for
4 years, with interest compounding twice annually.
10 Use the answer to question 9 to calculate the future value of an annuity of $1250
every six months for 4 years, with interest of 16% p.a., compounding twice annually.
A growing investment
Bindi is investing $20 000 in a xed term deposit earning 6% p.a. interest. When
Bindi has $30 000 she intends to put a deposit on a house.
1 Write the compound interest function that will model the growth of Bindis
investment.
2 Use your graphics calculator to graph this function
3 Find the length of time (correct to the nearest year) that it will take for Bindis
investment to grow to $30 000.
4 Suppose that Bindi had been able to invest at 8% p.a. How much quicker would
Bindis investment have grown to the $30 000 she needs?
5 Calvin has $15 000 to invest. Find the lowest interest rate at which Calvin must
invest his money, if his investment is to grow to $30 000 in 8 years.
2
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Ination
The price of goods and services rises from year to year. To predict the future price
of an item we can use the compound interest formula taking the rate of ination as R.
The same method is used to predict the future value of collectibles and of
memorabilia, which tend to rise at a rate greater than ination.
Depreciation can be calculated in two ways. The depreciation can be straight line
depreciation or declining balance depreciation.
Straight line depreciation occurs when the value of an asset decreases by a constant
amount each year. The graph of salvage value is a straight line, the vertical intercept
is the purchase price and the gradient is the negative of the annual depreciation.
Declining balance depreciation occurs when the salvage value of the item is a
percentage of the previous years value. The graph of a declining balance
depreciation will be an exponential decay graph.
The salvage value of an asset under straight line depreciation can be calculated
using the formula S V
o
Dn, where S is the salvage value, V
o
is the purchase price
of the asset, D is the amount of depreciation per period and n is the number of
periods of depreciation.
Values of V
o
, D or n can be calculated by substitution and solving the equation.
Declining balance method of depreciation
Under declining balance depreciation the salvage value of an asset can be
calculated using the formula S V
o
, where R is the percentage
depreciation per year.
To calculate the amount by which an asset depreciates in a year we subtract the
salvage value at the end of the year from the salvage value at the beginning of the year.
Depreciation tables
Depreciation can be compared using either a table or a graph.
Tax deductions are allowed for depreciation of assets that are used as part of
earning an income.
A depreciation schedule is used to calculate tax deductions over a period of years.
Future value of an annuity
An annuity is where regular equal contributions are made to an investment. The
interest on each contribution compounds as additions are made to the annuity.
The future value of an annuity is the value that the annuity will have at the end of a
xed period of time.
Use of tables
A table can be used to nd the present or future value of an annuity.
The table shows the present or future value of $1 under an annuity.
The present or future value of $1 must be multiplied by the contribution per period
to calculate its present or future value.
summary
1
R
100
---------
,
_
T
1 An MP3 player is currently priced at $80. If the current ination rate is 4.3%, estimate the
price of the player after one year.
2 It is predicted that the average ination rate for the next ve years will be 3.7%. If a
skateboard currently costs $125, estimate the cost of the skateboard after ve years.
3 In 1980, Cherie bought a limited edition photograph autographed by Sir Donald Bradman
for $120. If the photograph appreciates in value by 15% per annum, calculate the value of
the photograph in 2010 (to the nearest $100).
4 The table below shows the depreciating value of a yacht.
a Draw a graph of the value of the yacht
against its age.
b Write a function for the value of the yacht.
5 The table below shows the depreciating value
of a racing bike.
a Draw a graph of the value of the bike against age.
b Write a function for the straight line depreciation.
c Use your graph to estimate the value of the bike after 9 years.
New (0) 200 000
1 180 000
2 160 000
3 140 000
4 120 000
5 100 000
New (0) 3500
1 3250
2 3000
3 2750
4 2500
5 2250
CHAPTER
review
2A
2A
2A
2B
2B
6 The function V 15 000 900A shows the value, V, of a motorcycle when it is
A years old.
a Draw a graph of this function.
b Use the graph to calculate the value of the motorcycle after 5 years.
c After how many years would the motorcycle be written off (the value of the
motorcycle become $0)?
7 The table below shows the declining value of a 4-wheel drive.
a Plot the points as given in the table and then draw a curve of best t to graph the
depreciation of the 4-wheel drive.
b Use your graph to estimate the value of the 4-wheel drive after 10 years.
c After what number of years will the value of the 4-wheel drive fall below $10 000?
8 A laundry buys dry-cleaning equipment for $8000. Each year the equipment depreciates by
25% of the previous years value. Calculate the value of the equipment at the end of the rst
ve years and use the results to draw a graph of the depreciation.
9 The purchase price of a car is $32 500. The car depreciates by $3250 each year. Use the
formula S V
o
Dn to calculate the salvage value of the car after 8 years.
10 Calculate the salvage value of an asset:
a after 6 years, that was purchased for $4000 and depreciates by $450 each year
b after 10 years, that was purchased for $75 000 and depreciates by $6000 each year
c after 9 years, that was purchased for $640 000 and depreciates by $45 000 each year.
11 A movie projector is purchased by a
cinema for $30 000. The projector
depreciates by $2500 each year. Calculate
the length of time it takes for the projector
to be written off.
12 A camera that was purchased new for
$1500 has a salvage value of $500 four
years later. Calculate the annual amount of
depreciation on the camera.
New (0) 60 000
1 48 000
2 38 400
3 30 720
4 24 576
5 19 660
2B
2B
2B
2C
2C
2C
2C
13 Arthur buys a car for $25 000. The depreciation on the car is $2250 each year. He decides
that he will trade the car in on a new car in the nal year before the salvage value falls
below $10 000. When will Arthur trade the car in?
14 The purchase price of a mobile home is $40 000. The value of the mobile home depreciates
by 15% p.a. By calculating the value of the mobile home at the end of each year, nd the
salvage value of the mobile home after 4 years. (Give your answer correct to the nearest $1.)
15 Use the declining balance depreciation formula to calculate the salvage value after 7 years of a
crop duster that was purchased for $850 000 and depreciates at 8% p.a. (Give your answer correct
to the nearest $1000.)
16 Calculate the salvage value of an asset (correct to the nearest $10) with a purchase price of:
a $40 000 that depreciates at 10% p.a. for 5 years
b $1500 that depreciates at 4% p.a. for 10 years
c $180 000 that depreciates at 12.5% p.a. for 15 years
d $4.5 million that depreciates at 40% p.a. for 10 years
e $250 000 that depreciates at 33 % p.a. for 4 years.
17 A company buys a new bus for $600 000. The company keeps buses for 10 years then trades
them in on a new bus. The estimate is that the value of the bus will depreciate by 12% p.a.
Calculate:
a the amount the owner can expect as a
trade-in for the bus in 10 years
b the amount by which the bus will
depreciate in 10 years.
18 A company has ofce equipment that is
valued at $100 000. The value of the
equipment can be depreciated at $10 000 each
year or by 15% p.a.
a Draw a table that will show the salvage
value of the ofce equipment for the rst
ten years under both methods of
depreciation. Give values correct to the
nearest $50.
b Draw a graph of the depreciating value of
the equipment under both methods of
depreciation.
2C
2D
2D
2D
1
3
---
2D
2E
19 A personal computer is purchased for $4500. A tax deduction for depreciation of the
computer is allowed at the rate of 33% p.a. When the value of the computer falls below
$1000, the computer can be written off. Copy and complete the
table below.
20 Use the table of future values of $1 on page 93 to calculate the future value of an annuity of
$4000 deposited per year at 7% p.a. for 8 years, with interest compounded annually.
21 Use the table of future values of $1 to calculate the future value of the following annuities.
b $3500 invested every six months for 4 years at 12% p.a., with interest compounded
six-monthly
c $200 invested every 3 months for 2 years at 16% p.a., with interest compounded
quarterly
d $1250 invested every month for 3 years at 10% p.a., with interest compounded
six-monthly
22 Use the table of present values of $1 on page 95 to calculate the present value of an annuity
of $500 invested per year for 6 years at 9% p.a., with interest compounded annually.
23 Use the table of present values to calculate the present value of each of the following
annuities.
b $2000 invested every six months for 5 years at 14% p.a., with interest compounded
six-monthly
c $500 invested every three months for 2 years at 16% p.a., with interest compounded
quarterly
d $300 invested every month for 4 years at 12% p.a., with interest compounded half-yearly
Year Salvage value ($) Tax deduction ($)
1
2
3
4
5
2E
2F
2F
2F
2F
1
2
--- Digital doc:
Test Yourself
Chapter 2
eBookplus eBookplus
Digital docs
SkillSHEET 2.1: Practise nding a percentage of a
quantity ( page 62)
Extension: Learn more about ination and
appreciation ( page 63)
Digital doc
WorkSHEET 2.1: Calculate appreciation and
depreciation of items in a variety of scenarios
(page 73)
Tutorial
Int-0901: Watch a worked example on
calculating the depreciation of a company car
( page 71)
Interactivity
Reducing balance depreciation int-0194: Consolidate
your understanding of reducing balance
depreciation ( page 70)
Digital docs
SkillSHEET 2.2: Practise converting percentages to
decimals ( page 85)
SkillSHEET 2.3: Practise increasing or decreasing
a percentage ( page 85)
Digital docs
Spreadsheet 200: Investigate using an annuity
calculator ( page 91)
WorkSHEET 2.2: Calculate annuities, present
values, rates and scrap value ( page 97 )
Digital doc
your progress ( page 103).
2A Inflation and appreciation
2C Straight line depreciation
WE8
2E Depreciation tables
2F Future and present value of an annuity
Chapter review
www.jacplus.com.au

3
syllabus
reference
Strand
Core topic
Managing money 2
In this
chapter
3A Flat rate interest
3B Home loans
3C The cost of a loan
3D Loan repayments
3E Bonds, debentures and
term deposits
3F Bank savings accounts
3G Investing in real estate
3H Investing in the stock
market
3I Graphing share
performance

Consumer

credit and
investments


106


A

Y

e a r 1 2 f


1

Express the follo

wing times as fractions of a year.

a

1 month

b

18 months

c

1 day

d

30 months

e

1 week

f

1 fortnight

2

Express the following percentages as decimals.

a

10%

b

1%

c

2.5%

d

3 %

e

0.5%

f

1.25%

3

Calculate the number of months in each of the following.

a

1 years

b

2 years

c

year

d

year

e

5 years 9 months

f

1 years

4

a

How many days in the months of:

i

June?

ii

November?

iii

March?

b

How many days are there from:

i

1 April to 15 May?

ii

10 July to 12 August?

iii

5 September to 31 October?

c

What is the date 55 days after each of the following?

i

1 January

ii

30 June

iii

17 February

5


a

The commission on $10 000 at the rate of 5% on the rst $8000 and 2% on the
remainder

b

Tax on $735 at the rate of $2.50 per $100 or part of $100

c

75c:$2 as a percentage

Fla

t rate interest

When students lea

ve school and enter the workforce, the question of
how best to invest savings frequently arises. Accumulating funds in a
savings account generally attracts a low interest rate. They would be
better off placing their funds in other investments, particularly if the
money has grown to a substantial sum. Would a short-term deposit in
a bank or building society be more suitable? Perhaps purchasing
shares would be appropriate. Typically, a sizeable proportion of the
family income is consumed by repayments on a personal loan, a
housing loan or a car loan. In this era of plastic money most workers
readily obtain access to a credit card. Used wisely, credit cards can be
an aid in nancial budgeting and planning. On the other hand, we
have heard many tales of woe, relating stories of misery and accumu-
lating nancial debt. This chapter aims to make you aware of the
advantages of investing wisely and the pitfalls to avoid in successfully
negotiating a path through the mineeld of the money market.
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C h a

p t e r 3 C o n s u m e r c r

e d i t a n d i n

v

e s t m e n t s

107

In the previous two chapters we calculated the simple interest earned on investments.
Flat rate interest is the borrowing equivalent of simple interest. Flat rate interest applies
to many personal loans, small loans and hire purchase agreements.
When money is borrowed from a lending institution, such as a bank, at a at rate of
interest, the total amount of interest is calculated as a percentage of the initial amount
borrowed and then this is multiplied by the

term of the loan

. The term of the loan is
the length of time over which the loan is agreed to be repaid.
The formula for calculating the amount of at interest to be paid on a loan is the
same formula as for simple interest (

I

):

I

=

where

P

is the principal (or amount borrowed),

R

is the interest rate per year and

T

is
the number of years over which the loan is to be repaid.
We discussed the use of the graphics calculator for simple interest calculations in
chapter 1. It would facilitate calculations here also.
Once the interest has been calculated, we can determine the total amount that must be
repaid in a loan. This is calculated by adding the principal and the interest.
Most loans are repaid on a monthly basis. Once the total amount to be repaid has been
calculated, this can be divided into equal monthly, fortnightly or weekly instalments.
PRT
100
-----------
Calculate the interest to be paid on a loan of $20 000 at 7.5% p.a. at interest if the loan is
to be repaid over 5 years.
THINK WRITE
Write the formula. I =
Substitute the values of P, R and T. I =
Calculate. I = $7500
1
PRT
100
-----------
2
$20 000 7.5 5
100
------------------------------------------
3
1
WORKEDExample
Alvin borrows $8000 to buy a car at a at rate of 9% p.a. interest. Alvin is to repay the
loan, plus interest, over 4 years. Calculate the total amount that Alvin is to repay on this
loan.
THINK WRITE
Write the interest formula. I =
Substitute the values of P, R and T. I =
Calculate the interest. I = $2880
Calculate the total repayments by
adding the interest and principal.
Total repayments = $8000 + $2880
Total repayments = $10 880
1
PRT
100
-----------
2
$8000 9 4
100
---------------------------------
3
4
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WORKEDExample
If given the amount to be repaid each month, we can calculate the interest rate. The interest
on the loan is the difference between the total repaid and the amount borrowed. This is
then calculated as a yearly amount and written as a percentage of the amount borrowed.
Narelle buys a computer on hire purchase. The cash
price of the computer is $3000, but Narelle must pay a
10% deposit with the balance paid at 8% p.a. at interest
in equal monthly instalments over 3 years.
a Calculate the deposit.
b Calculate the balance owing.
c Calculate the interest on the loan.
d Calculate the total amount to be repaid.
e Calculate the amount of each monthly instalment.
THINK WRITE
a Find 10% of $3000. a Deposit = 10% of $3000
= $300
b Subtract the deposit from the cash price to
nd the amount borrowed.
b Balance = $3000 $300
= $2700
c Write the interest formula. c I =
Substitute for P, R and T.
=
Calculate the interest. = $648
d Add the interest to the amount borrowed. d Total repayments = $2700 + $648
= $3348
e Divide the total repayments by 36 (the number
of monthly instalments in 3 years).
e Monthly repayments = $3348 36
= $93.00
1
PRT
100
-----------
2 $2700 8 3
100
---------------------------------
3
3
WORKEDExample
Theresa borrows $12 000 to buy a car. This is to be repaid over 5 years at $320 per month.
Calculate the at rate of interest that Theresa has been charged.
THINK WRITE
Calculate the total amount that is
repaid.
Subtract the principal from the total
repayments to nd the interest.
Interest = $19 200 $12 000
Interest = $7200
Calculate the interest rate using the
formula (remember to use brackets on
the denominator).
R =
R =
R = 12
Write the answer. The at rate of interest is 12% p.a.
1
2
3
100I
PT
-----------
100 7200
12 000 5
---------------------------
4
4
WORKEDExample
C h a p t e r 3 C o n s u m e r c r e d i t a n d i n v e s t m e n t s 109
Flat rate interest
1 Calculate the amount of at rate interest paid on each of the following loans.
a $5000 at 7% p.a. for 2 years b $8000 at 5% p.a. for 3 years
c $15 000 at 10% p.a. for 5 years d $9500 at 7.5% p.a. for 4 years
e $2500 at 10.4% p.a. for 18 months
2 Roula buys a used car that has a cash price of $7500. She has saved a deposit
of $2000 and borrows the balance at 9.6% p.a. at rate to be repaid over 3 years.
Calculate the amount of interest that Roula must pay.
3 Ben borrows $4000 for a holiday. The loan is to be repaid over 2 years at
12.5% p.a. at interest. Calculate the total repayments that Ben must make.
4 Calculate the total amount to be paid on each of the following at rate interest
loans.
a $3500 at 8% p.a. over 2 years b $13 500 at 11.6% p.a. over 5 years
c $1500 at 13.5% p.a. over 18 months d $300 at 33% p.a. over 1 month
e $100 000 at 7% p.a. over 25 years
5 Mr and Mrs French purchase a new lounge suite, which has a cash price of $5500.
They purchase the lounge on the following terms: 30% deposit with the balance to be
repaid at 9% p.a. at interest over 2 years. Calculate:
a the deposit
b the balance owing
c the interest to be paid
d the total amount that they pay for the lounge.
6 Yasmin borrows $5000 from a credit union at a at interest rate of 8% p.a. to be
repaid over 4 years in equal monthly instalments. Calculate:
a the interest Yasmin pays on the loan
b the total amount that Yasmin must repay
c the amount of each monthly repayment.
7 Ian borrows $2000 from a pawnbroker at 40% p.a. interest. The loan is to be paid over
1 year in equal weekly payments.
a Calculate the interest on the loan. b Calculate the total that Ian must repay.
c Calculate Ians weekly payment.
1. Flat rate interest is the borrowing equivalent of simple interest. It is calculated
based on the initial amount borrowed.
2. The simple interest formula is used to calculate the amount of at rate interest
to be paid on a loan.
3. The total amount to be repaid on a loan is the principal plus interest. To
calculate the amount of each instalment, we divide the total amount by the
number of repayments.
4. When given the amount of each instalment, we can calculate the at rate of interest.
remember
3A
Digital docs:
SkillSHEET 3.1
Converting
percentages to
fractions
SkillSHEET 3.2
Converting
percentages to
decimals
SkillSHEET 3.3
Finding a
percentage of a
quantity
SkillSHEET 3.4
Writing one
quantity as a
percentage of
another
eBookplus eBookplus
WORKED
Example
1
WORKED
Example
2
WORKED
Example
3ad
WORKED
Example
3ce
8 The Richards family purchase an entertainment system for their home. The total cost
of the system is $8000. They buy the system on the following terms: 25% deposit
with the balance repaid over 3 years at 12% p.a. at interest in equal
monthly instalments. Calculate:
a the deposit b the balance owing
c the interest on the loan d the total repayments
e the amount of each monthly repayment.
9 Sam buys an electric guitar with a cash price of $1200. He buys the
guitar on the following terms: one-third deposit, with the balance at
15% p.a. at interest over 2 years in equal monthly instalments. Calculate
the amount of each monthly repayment.
10
The amount of at interest on a loan of $10 000 at 10% p.a. for 2 years is:
A $1000
B $2000
C $4000
D $11 000
E $12 000
11
A refrigerator with a cash price of $1800 is bought on
the following terms: 20% deposit with the balance paid
in 12 equal monthly instalments at 12% p.a. at interest.
The total cost of the refrigerator when purchased on terms is:
A $172.80
B $216.00
C $1612.80
D $1972.80
E $2016.00
12 Andy borrows $4000, which is to be repaid over 4 years at $110 per month. Calculate
the at rate of interest that Andy has been charged.
13 Sandra buys a used car with a cash
price of $12 000 on the following
terms: 20% deposit with the bal-
ance paid at $89.23 per week for
3 years. Calculate:
a the deposit
b the balance owing
c the total cost of the car
d the at rate of interest charged.
14 Calculate the at rate of interest
charged on a lounge suite with a
cash price of $5000 if it is pur-
chased on the following terms:
15% deposit with the balance paid
at $230.21 per month for 2 years.
multiple choice
multiple choice
WORKED
Example
4
Flat rate interest loan calculator
Use the Flat interest weblink in your eBookPLUS and download the spreadsheet.
This spreadsheet will demonstrate how to calculate a deposit, the total repayments
on a loan and the size of each repayment.
Monthly payment calculator
Consider a $5000 loan to be repaid at 9% p.a. at rate interest over 3 years.
1 On the sheet titled Monthly payments, in cell B5 enter the amount which has
been borrowed ($5000), or the balance owing on a purchase after the deposit
has been paid.
2 In cell B7 enter the interest rate as a percentage (9%).
3 In cell B9 enter the number of years over which the loan is to be repaid (3).
4 The total interest paid on the loan will be displayed in cell B11. The formula
for this will be displayed in this cell.
5 Cell B13 shows the total amount to be repaid and cell B15 shows the amount of
each repayment.
Flat interest rate calculator
The worksheet Flat interest rate will calculate the at rate of interest charged
given the amount of each repayment. Consider a $15 000 loan that is repaid over
5 years at $350 per month.
(Continued )
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eBookplus eBookplus
Digital doc:
Spreadsheet
202 Flat interest
Home loans
The biggest loan that most people will ever take out will be for a home. These loans are
usually for large amounts of money, often over $300 000 and are taken over long
periods of time. Most commonly they are taken over 10, 15, 20 or 25 years but they can
be taken over even longer periods of up to 35 years.
Home loans are not charged at a at rate of interest. The interest on these loans is
reducible, which means that the interest is calculated on the amount of money owing on
the loan at the time, rather than on the amount initially borrowed. This is known as a
reducing balance loan.
The interest on a home loan is usually calculated at the beginning of each month, and
payments are calculated on a monthly basis. So each month, interest is added to the
loan and a payment is subtracted from the balance owing. The balance increases by the
amount of interest, then decreases by the amount of each payment.
Consider the case of a person who borrows $200 000 to buy a home at 9% p.a.
reducible interest. The monthly repayment on this loan is $1800. The interest rate of
9% p.a. converts to 0.75% per month.
1 In cell B5 enter the amount borrowed ($15 000).
2 In cell B7 enter the amount of each monthly payment ($350).
3 In cell B9 enter the total number of monthly payments (60).
4 Displayed will be the total amount to be repaid, the total interest paid on the
loan, the amount of interest paid per year and the at rate of interest.
Check your answers to the previous exercise on this spreadsheet.
First months interest = 0.75% of $200 000
First months interest = $1500
Balance owing = $200 000 + $1500 $1800
Balance owing = $199 700
In the second month the interest is calculated on the balance owing at the end of the
rst month.
Second months interest = 0.75% of $199 700
Second months interest = $1497.75
Balance owing = $199 700 + $1497.75 $1800
Balance owing = $199 397.75
The progress of this loan can be followed in the computer application following.
Home loan calculator
Download the spreadsheet Home loan from your eBookPLUS and locating the
weblinks for this chapter. This spreadsheet will allow you to follow the progress of
a home loan as it is paid off.
Use the Edit and then the Fill and Down functions on columns A, B, C and D.
Look down column D to nd when the balance owing becomes 0 or when it
becomes negative. At this time the loan will have been fully repaid.
1 What is the term of the loan?
2 Change the amount borrowed. What effect does this have?
3 Experiment by changing the interest rate. What effect does it have?
4 Experiment by changing the monthly repayment.
5 Write a report outlining the results of your investigation.
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eBookplus eBookplus
Digital doc:
Spreadsheet
204 Home loan
When interest is calculated every year for such a long period of time, as with many
home loans, the amount of money required to pay off such a loan can be a great deal
more than the initial loan. Notice how, in the previous worked example, the $100 000
loan has been reduced by only $108.33, even though a payment of $775 has been made.
Notice how the loan was for $120 000 and the total repaid was more than 2.5 times this
amount!
Mr and Mrs Chan take out a $100 000 home loan at 8% p.a. reducible interest over
25 years. Interest is calculated and added on the rst of each month. They make a
payment of $775 each month. Calculate:
a the interest added after 1 month b the balance owing after 1 month.
THINK WRITE
a Apply the simple interest formula
for a time period of 1 month.
a I =
Solve the equation. Interest =
= $666.67
b Add the interest to the principal and
subtract the repayment.
b Balance owing
= $100 000 + $666.67 $775
= $99 891.67
1
PRT
100
-----------
2
100 000 8
1
12
------
100
---------------------------------------
5
WORKEDExample
A loan of $120 000 is paid off at 9% p.a. reducible interest over a period of 25 years.
The monthly repayment is $1007.04. Calculate the total repayments on this loan.
THINK WRITE
Calculate the number of repayments by
multiplying the number of years by 12.
No. of repayments = 25 12
No. of repayments = 300
Multiply the monthly repayment by the
number of repayments.
Total repayments = $1007.04 300
Total repayments = $302 112.00
1
2
6
WORKEDExample
1. The interest on home loans is calculated at a reducible rate. This means that the
interest is calculated on the balance owing rather than the initial amount
borrowed.
2. Interest is calculated each month; this is then added to the principal and a
payment is made. The interest next month is then calculated on the new amount
owing.
3. To calculate the total amount to be repaid on a home loan, we multiply the
monthly payment by the number of repayments made.
remember
Home loans
1 Mr and Mrs Devcich borrow $80 000 to top up their home loan. The interest rate is
12% p.a. and their monthly payment is $850 per month.
a Calculate the interest for the rst
month of the loan.
b Calculate the balance owing at the
end of the rst month.
2 The repayment on a loan of $50 000 at
7.5% p.a. over a 15-year term is $463.51
per month.
a Calculate the interest for the rst
month of the loan and the balance
owing at the end of the rst month.
b Calculate the amount by which the
balance has reduced in the rst
month.
c Calculate the interest for the second
month of the loan and the balance at
the end of the second month.
d By how much has the balance of the
loan reduced during the second
month?
3 The repayment on a loan of $150 000 over a 20-year term at 9.6% p.a. is $1408.01 per
month. Copy and complete the table below.
Month Principal ($) Interest ($) Balance owing ($)
1 150 000.00 1200.00 149 791.99
2 149 791.99
3
4
5
6
7
8
9
10
3B
WORKED
Example
5
4 Mr and Mrs Roebuck borrow $85 000 as a home loan. The interest rate is 9% p.a. and
over a 25-year term the monthly repayment is $764.77.
a Copy and complete the table below.
b Mr and Mrs Roebuck decide to increase their monthly payment to $800. Copy
and complete the table below.
c How much less do Mr and Mrs Roebuck owe at the end of one year by increasing
their monthly repayment?
Month Principal ($) Interest ($)
Balance
owing ($)
1 85 000.00 637.50 84 872.73
2 84 872.73
3
4
5
6
7
8
9
10
11
12
Balance
owing ($)
1 85 000.00 637.50 84 837.50
2 84 837.50
3
4
5
6
7
8
9
10
11
12
5 The repayments on a loan of $105 000 at 8% p.a. reducible interest over 25 years are
$810.41 per month. Calculate the total repayments made over the life of the loan.
6 The Taylors borrow $140 000 over 20 years at 9% p.a.
a The monthly repayment on this loan is $1259.62. Calculate the total made in
repayments.
b The Taylors attempt to pay the loan off quickly by increasing their monthly
payment to $1500. The loan is then paid off in 161 months. Calculate the total
repayments made under this plan.
c How much will the Taylors save by increasing each monthly payment?
7
The rst months interest on a $60 000 home loan at 12% p.a. reducible interest is:
8
A $95 000 loan at 8% p.a. reducible interest over a 15-year term has a monthly
payment of $907.87. The total amount of interest paid on this loan is:
9 Mr and Mrs Chakraborty need to borrow $100 000 to purchase a home. The interest
rate charged by the bank is 7% p.a. Calculate the total interest paid if the loan is taken
over each of the following terms:
a $706.78 per month over a 25-year term
b $775.30 per month over a 20-year term
c $898.83 per month over a 15-year term
d $1161.08 per month over a 10-year term.
10 The Smith and Jones families each take out a $50 000 loan at 9.5% p.a. reducible
interest. The Smith family repay the loan at $500 per month and the Jones family
repay the loan at $750 per month.
a How much does each family make in repayments in the rst year?
b Complete the following table for each family.
A $600 B $7200 C $59 400 D $60 600 E $67 200
A $7600 B $68 416.60 C $102 600 D $114 000 E $163 416.60
i Jones family
Balance
owing ($)
1 50 000.00 395.83 49 645.83
2 49 645.83
3
4
5
6
7
8
9
10
11
12
WORKED
Example
6
multiple choice
multiple choice
c After one year how much less does the Jones family owe than the Smith family?
Jones family
1 50 000.00 395.83 49 645.83
2 49 645.83
3
4
5
6
7
8
9
10
11
12
ii
1 Calculate the amount of at rate interest payable on a loan of $1500 at 14% p.a.
2 Calculate the amount of at rate interest payable on a loan of $2365 at 19.2% p.a.
3 Calculate the total repayments on a loan of $5000 at a at rate of 13.5% p.a. to be
repaid over 3 years.
4 Susan buys a lounge suite on terms. The cash price of the lounge is $6500 and she
pays a 15% deposit. Calculate the amount of the deposit.
5 Calculate the balance that Susan owes on the lounge suite.
6 Calculate the interest that Susan will pay at 17% p.a. at rate interest for 3 years.
7 Calculate the total amount that Susan will have to repay.
8 Calculate the monthly repayment that Susan will need to make.
9 Harry and Sally borrow $164 000 to purchase a home. The interest rate is 12%
p.a. Calculate the amount of interest payable for the rst month.
10 A $175 000 loan that is repaid over 25 years has a monthly repayment of
$1468.59. Calculate the total amount of interest that is paid on this loan.
The cost of a loan
Because of the different ways that interest can be calculated, the actual interest rate
quoted may not be an accurate guide to the cost of the loan. By using a at rate of
interest, a lender can quote an interest rate less than the equivalent reducible interest
rate.
To compare at and reducible rates of interest, we need to calculate the effective rate
of interest for a at rate loan. The effective rate of interest is the equivalent rate of
reducible interest for a at rate loan.
The formula for effective rate of interest is:
where E is the effective rate of interest expressed as a decimal, r is the stated rate of at
interest expressed as a decimal and n is the term of the loan in years.
1
1
2
---
E
1 r + ( )
n
1
n
---------------------------- =
A loan with a reducible rate of interest can be compared to a at rate of interest if we
are able to calculate the total repayments made over the term of the loan.
The most accurate way to compare loans is to calculate the total repayments made in
the loan.
Andrea takes out an $8000 loan for a car over 5 years at 6% p.a. at rate interest.
Calculate the effective rate of interest charged on the loan.
THINK WRITE
Write the formula. E =
Substitute r = 0.06 and n = 5.
E =
Calculate. E = 0.068
Write the interest rate as a percentage. The effective rate of interest is 6.8% p.a.
1
1 r + ( )
n
1
n
----------------------------
2
1.06 ( )
5
1
5
--------------------------
3
4
7
WORKEDExample
An $85 000 loan at 10% p.a. reducible interest is to be repaid over 15 years at $913.41 per
month.
a Calculate the total repayments on the loan.
b Calculate the total amount of interest paid.
c Calculate the equivalent at rate of interest on this loan.
THINK WRITE
a Multiply the monthly repayments by the
number of months taken to repay the
loan.
a Total repayments = $913.41 180
Total repayments = $164 413.80
b Subtract the initial amount borrowed
from the total repayments.
b Interest = $164 413.80 $85 000
Interest = $79 413.80
c Calculate the interest rate using the
formula.
c R =
Substitute into the formula and
evaluate.
R =
R = 6.2
Write and answer. Flat interest rate is 6.2% p.a.
1
100I
PT
-----------
2
100 79 413.80
85 000 15
--------------------------------------
3
8
WORKEDExample
In the previous worked example Allison should take Loan B even though it has a much
higher advertised interest rate. This of course would depend upon Allisons ability to
meet the higher monthly payments.
Generally the quicker that you can pay off a loan the cheaper the loan will be.
The savings are particularly evident when we are examining home loans. Some home
loans that offer a lower interest rate allow you to make only the minimum monthly
repayment. This will maximise the amount of interest that the customer will pay.
People who can afford to pay more than the minimum amount may be better off over
time by paying a slightly higher rate of interest and paying the loan off over a shorter
period of time.
There are other factors which must also be considered when we are negotiating the
terms of a loan. Interest rates can be xed or variable. In the latter case, when the rate
changes it generally increases rather than decreases. This is usually not accompanied
by a pay rise in the workforce. The household budget must then accommodate these
higher loan repayments. This can lead to foreclosure of the loan and repossession of the
property if these payments cannot be met.
Allison borrows $6000 and has narrowed her choice of loans down to two options.
Loan A: At 8% p.a. at rate interest over 4 years to be repaid at $165.00 per month.
Loan B: At 12% p.a. reducible interest over 3 years to be paid at $199.29 per month.
Which of the two loans would cost Allison less?
THINK WRITE
Calculate the total repayments on Loan A. Loan A repayments = $165.00 48
= $7920
Calculate the total repayments on Loan B. Loan B repayments = $199.29 36
= $7174.44
Write a conclusion. Loan B would cost $745.56 less than Loan A.
1
2
3
9
WORKEDExample
Mr and Mrs Beasley need to borrow $100 000 and have the choice of two home loans.
Loan X: 6% p.a. over 25 years with a xed monthly repayment of $644.30. No extra
repayments are allowed on this loan.
Loan Y: 7% p.a. over 25 years with a minimum monthly payment of $706.78.
Mr and Mrs Beasley believe they can afford to pay $800 per month on Loan Y. If they do,
the loan will be repaid in 18 years and 9 months. Which loan would you recommend?
THINK WRITE
Calculate the total repayments on Loan X. Loan X repayments = $644.30 300
= $193 290
Calculate the total repayments on Loan Y. Loan Y repayments = $800 225
= $180 000
Make a recommendation. Mr and Mrs Beasley should choose Loan Y
as they will save $13 290 provided they can
continue to pay $800 per month.
1
2
3
10
WORKEDExample
With loans such as the one in Worked example 10, the savings depend upon the ability
to make the extra repayments. If this is doubtful, Loan X would have been the safer
option.
The other factor to consider when calculating the cost of a loan is fees. Many loans
have a monthly management fee attached to them. This will need to be calculated into
the total cost and may mean that a loan with a slightly higher interest rate but no fee
may be a cheaper option.
The cost of a loan
1 A $15 000 loan is to be repaid at 8% p.a. at rate interest over a 10-year term. Use the
formula to calculate the effective rate of interest.
2 Calculate the effective rate of interest on each of the following at rate loans.
a 10% p.a. over 4 years b 8% p.a. over 2 years c 12% p.a. over 5 years
d 7.5% p.a. over 10 years e 9.6% p.a. over 6 years
3 A bank offers loans at 8% p.a. at rate of interest. Calculate the effective rate of
interest for a loan taken over:
a 2 years b 3 years c 4 years
d 5 years e 10 years f 20 years.
4 An $85 000 home loan at 9% p.a reducible interest is to be repaid over 25 years at
$713.32 per month.
b Calculate the total amount of interest paid.
c Calculate the equivalent at rate of interest on the loan.
1. The actual cost of a loan is calculated by the total cost in repaying the loan.
The interest rate is a guide but not the only factor in calculating cost.
2. A loan that is quoted at a at rate of interest can be compared to a reducible
rate of interest only by calculating the effective rate of interest on the at rate
loan. The effective rate of interest is the equivalent reducible rate of interest
and is found using the formula:
3. By calculating the total repayments on a loan, we can calculate the equivalent
at rate of interest paid on the loan.
4. A loan that is repaid over a shorter period of time will usually cost less than
one where the repayments are made over the full term of the loan.
5. The exibility of a loan, which includes factors such as whether extra
repayments can be made, is important when considering the cost of a loan.
6. When we are calculating the cost of a loan, any ongoing fees need to be
determined.
E
1 r + ( )
n
1
n
---------------------------- =
remember
3C
WORKED
Example
7
E
1 r + ( )
n
1
n
---------------------------- =
WORKED
Example
8
5 Calculate the equivalent at rate
of interest paid on a $115 000
loan at 12% p.a. reducible
interest to be repaid over
30 years at $1182.90 per month.
6 Kim borrows $12 000 for a hol-
iday to South-East Asia. She is
faced with a choice of two
loans.
Loan I: At 10% p.a. at rate of
interest over 2 years to be repaid
at $600 per month.
Loan II: At 12.5% p.a. reducible
interest over 3 years to be repaid
at $401.44 per month.
Which loan will cost Kim the
least money?
7 Calculate the total cost of
repaying a loan of $100 000 at
8% p.a. reducible interest:
a over 25 years with a monthly
repayment of $771.82
b over 20 years with a monthly
repayment of $836.44
c over 10 years with a monthly
repayment of $1213.28.
8 Masako and Ryu borrow
$125 000 for their home.
They have the choice of
two loans.
Loan 1: A low interest
loan at 7% p.a. interest
over 25 years with xed
repayments of $833.47
per month.
Loan 2: A loan at 7.5%
p.a interest over 25 years
with minimum repayments of $923.74 per month.
Masako and Ryu believe they can afford to pay $1000 per month. If they do, Loan 2
will be repaid in 20 years and 4 months.
Which loan should they choose if they could afford to pay the extra each month?
9
A loan can be taken out at 8% p.a. at interest or 9% p.a. reducible interest. Using the
formula , the number of years of the loan (n) after which the effective
rate of interest on the at rate loan becomes greater than the reducible rate loan is:
A 2 years B 3 years C 4 years D 5 years E 6 years
WORKED
Example
9
WORKED
Example
10
multiple choice
E
1 r + ( )
n
1
n
---------------------------- =
10 Glenn and Inge are applying for a $150 000 loan to be repaid over 25 years.
a Bank A charges 7.8% p.a. interest, no fees, with the loan to be repaid at $1137.92
per month. Calculate the total cost of this loan.
b Bank B charges 7.6% p.a. interest, a $600 loan application fee, a $5 per month
management fee and repayments of $1118.26 per month. Calculate the total cost
of this loan.
11
A $50 000 loan is to be taken out. Which of the following loans will have the lowest
total cost?
A 5% p.a. at rate interest to be repaid over 10 years
B 8% p.a. reducible interest to be repaid over 10 years at $606.64 per month
C 6% p.a. reducible interest to be repaid over 12 years at $487.93 per month
D 6.5% p.a. reducible interest to be repaid over 10 years at $567.74 per month, with
a $600 loan application fee and $8 per month account management fee
E 7% p.a. reducible interest to be repaid over 15 years at $450 per month
12 A home loan of $250 000 is taken out over a 20-year term. The interest rate is
9.5% p.a. and the monthly repayments are $2330.33.
a The mortgage application fee on this loan was $600 and there is a $10 per month
account management fee. Calculate the total cost of repaying this loan.
b Calculate the equivalent at rate of interest on the loan. (Consider the extra
payments as part of the interest.)
c If the loan is repaid at $3000 per month, it will take 11 years to repay the loan.
Calculate the equivalent at rate of interest if this repayment plan is followed.
Researching home loans
Suppose that you wish to borrow $100 000 to buy a unit. Go to a bank or other
lender and gather the following information:
1 the annual interest rate
2 the loan application fee and any other costs such as stamp duty, legal costs etc.
associated with establishing the loan
3 the monthly account-keeping or management fee, if any
4 the monthly repayment if the loan is repaid over:
a 15 years b 20 years c 25 years.
5 the total cost of repaying the loan in each of the above examples.
There are many ways that people can reduce the overall cost of repaying a
mortgage. Research and explain why people are able to save money by adopting
the following repayment strategies:
1 repaying the loan fortnightly or weekly instead of monthly
2 using an account where the whole of a persons net pay is deposited on the
mortgage and then a redraw is used to meet living expenses.
multiple choice
1
2
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Constructing a loan repayment
schedule using a spreadsheet
You have just obtained a $2000 loan from a bank to purchase a second-hand car.
The interest rate on the loan is 15% p.a. on a monthly reducing balance. You agree
to repay the loan (principal plus interest) in equal monthly instalments of $180.52
over a period of 1 year.
Let us construct the spreadsheet shown below.
1 Enter the spreadsheet heading in cell A1 and the side headings in cells A3 to
A6.
2 Enter 2000 in cell B3 then format it to currency. Similarly, enter 180.52 in cell
B5 then format as currency.
3 Enter the data shown in cells B4 and B6.
4 Enter the column headings in row 8.
5 In cell A9, we start with the rst month. Enter the value 1 here.
6 In order to make this spreadsheet versatile, where possible, the entries from
now on should contain references to other cells rather than entries in the form
of numbers.
7 In cell A10, enter the formula =A9+1 (adding 1 to the value in the cell above).
Copy this formula down to row 20.
8 In cell B9, enter the formula =B3. This reproduces the original value of the
principal in this cell.
(Continued)
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9 Enter the formula =E9 in cell B10. This takes the balance at the end of the
previous period as the principal for the next period. Copy this formula down
from cell B10 to B20. The correct values will not appear in these cells yet, as
column E has not been completed. Once the whole spreadsheet has been
completed, all the cells containing a formula will display values.
10 The formula in cell C9 is that for simple interest.
Enter =B9*$B$4/($B$6*100). Notice the reference to other cells rather than
the entry of numeric values. Copy this formula down from C9 to C20.
11 The repayment is the same amount each month. Enter the formula =$B$5 in
cell D9. Copy this formula down from D9 to D20.
12 The balance at the end of each period is calculated as the principal at the start
of the period plus the interest charges minus the payment made for that period.
In cell E9, enter the formula =B9+C9D9. Copy this formula down from cell
E9 to E20. You should nd that the spreadsheet displays all the values now.
13 Use the graphing facility of the spreadsheet to create a graph similar to the one
shown.
14 Notice that the principal reduces each month, as does the interest. Change the
principal in cell B3. Write down the effect this has on the spreadsheet.
15 Change the interest rate in cell B4. Describe the effect this has on the
spreadsheet.
16 Increase and decrease the repayment in cell B5. What effect does this have?
17 What effect does increasing the number of payments per year have on the
spreadsheet (increase the value in cell B6)? Decrease the number of yearly
payments and note the effect.
18 A method used to decrease the
interest payable on housing
loans is to increase the
repayment amount or to
increase the number of yearly
payments. Would doubling the
monthly repayment halve the
life of the loan? Would
doubling the number of
repayments per year halve the
life of the loan? Explain.
19 Imagine you wanted to make an
extra large payment one month.
What effect would this have on
the loan and the shape of the
curve? Enter a value of 500 as
the repayment in the sixth
month. Describe the effect this
has on the spreadsheet and the
shape of the graph.
This spreadsheet can be used to
check the answers to many of the
problems on loan calculations. Save
it so you have a copy readily available.
Loan repayments
With a reducing balance loan, an amount of interest is added to the principal each
month and then a repayment is made which is then subtracted from the outstanding
balance. Consider the case of a $2000 loan at 15% p.a. to be repaid over 1 year in equal
monthly instalments of $180.52. We constructed the spreadsheet for this loan in the
previous investigation and it is summarised below.
The actual calculation of the amount to be repaid each month to pay off the loan plus
interest in the given period of time is beyond this course. We will look at these calcu-
lations in a graphics calculator investigation later. The most practical way to nd the
amount of each monthly repayment is to use a table of repayments.
Monthly repayment per $1000 borrowed
(continued)
Month
Opening
balance Interest
Closing
balance
1 $2000.00 $25.00 $1844.48
2 $1844.48 $23.06 $1687.02
3 $1687.02 $21.09 $1527.59
4 $1527.59 $19.09 $1366.17
5 $1366.17 $17.08 $1202.73
6 $1202.73 $15.03 $1037.25
7 $1037.25 $12.97 $ 869.70
8 $ 869.70 $10.87 $ 700.05
9 $ 700.05 $ 8.75 $ 528.29
10 $ 528.29 $ 6.60 $ 354.37
11 $ 354.37 $ 4.43 $ 178.29
12 $ 178.29 $ 2.23 $ 0.00
Interest rate
Year 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
1 $85.61 $86.07 $86.53 $86.99 $87.45 $87.92 $88.38 $88.85 $89.32 $89.79 $90.26
2 $43.87 $44.32 $44.77 $45.23 $45.68 $46.14 $46.61 $47.07 $47.54 $48.01 $48.49
3 $29.97 $30.42 $30.88 $31.34 $31.80 $32.27 $32.74 $33.21 $33.69 $34.18 $34.67
4 $23.03 $23.49 $23.95 $24.41 $24.89 $25.36 $25.85 $26.33 $26.83 $27.33 $27.83
5 $18.87 $19.33 $19.80 $20.28 $20.76 $21.25 $21.74 $22.24 $22.75 $23.27 $23.79
6 $16.10 $16.57 $17.05 $17.53 $18.03 $18.53 $19.03 $19.55 $20.07 $20.61 $21.15
7 $14.13 $14.61 $15.09 $15.59 $16.09 $16.60 $17.12 $17.65 $18.19 $18.74 $19.30
Monthly repayment per $1000 borrowed (continued)
The table shows the monthly repayment on a $1000 loan at various interest rates over
various terms. To calculate the repayment on a loan, we simply multiply the repayment
on $1000 by the number of thousands of dollars of the loan.
This table can also be used to make calculations such as the effect that interest rate rises
will have on a home loan.
Interest rate
Year 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
8 $12.66 $13.14 $13.63 $14.14 $14.65 $15.17 $15.71 $16.25 $16.81 $17.37 $17.95
9 $11.52 $12.01 $12.51 $13.02 $13.54 $14.08 $14.63 $15.18 $15.75 $16.33 $16.92
10 $10.61 $11.10 $11.61 $12.13 $12.67 $13.22 $13.78 $14.35 $14.93 $15.53 $16.13
11 $ 9.86 $10.37 $10.88 $11.42 $11.96 $12.52 $13.09 $13.68 $14.28 $14.89 $15.51
12 $ 9.25 $ 9.76 $10.28 $10.82 $11.38 $11.95 $12.54 $13.13 $13.75 $14.37 $15.01
13 $ 8.73 $ 9.25 $ 9.78 $10.33 $10.90 $11.48 $12.08 $12.69 $13.31 $13.95 $14.60
14 $ 8.29 $ 8.81 $ 9.35 $ 9.91 $10.49 $11.08 $11.69 $12.31 $12.95 $13.60 $14.27
15 $ 7.91 $ 8.44 $ 8.99 $ 9.56 $10.14 $10.75 $11.37 $12.00 $12.65 $13.32 $14.00
16 $ 7.58 $ 8.11 $ 8.67 $ 9.25 $ 9.85 $10.46 $11.09 $11.74 $12.40 $13.08 $13.77
17 $ 7.29 $ 7.83 $ 8.40 $ 8.98 $ 9.59 $10.21 $10.85 $11.51 $12.19 $12.87 $13.58
18 $ 7.03 $ 7.58 $ 8.16 $ 8.75 $ 9.36 $10.00 $10.65 $11.32 $12.00 $12.70 $13.42
19 $ 6.80 $ 7.36 $ 7.94 $ 8.55 $ 9.17 $ 9.81 $10.47 $11.15 $11.85 $12.56 $13.28
20 $ 6.60 $ 7.16 $ 7.75 $ 8.36 $ 9.00 $ 9.65 $10.32 $11.01 $11.72 $12.44 $13.17
21 $ 6.42 $ 6.99 $ 7.58 $ 8.20 $ 8.85 $ 9.51 $10.19 $10.89 $11.60 $12.33 $13.07
22 $ 6.25 $ 6.83 $ 7.43 $ 8.06 $ 8.71 $ 9.38 $10.07 $10.78 $11.50 $12.24 $12.99
23 $ 6.10 $ 6.69 $ 7.30 $ 7.93 $ 8.59 $ 9.27 $ 9.97 $10.69 $11.42 $12.16 $12.92
24 $ 5.97 $ 6.56 $ 7.18 $ 7.82 $ 8.49 $ 9.17 $ 9.88 $10.60 $11.34 $12.10 $12.86
25 $ 5.85 $ 6.44 $ 7.07 $ 7.72 $ 8.39 $ 9.09 $ 9.80 $10.53 $11.28 $12.04 $12.81
Calculate the monthly repayment on a loan of $85 000 at 11% p.a. over a 25 year term.
THINK WRITE
Look up the table to nd the monthly
repayment on $1000 at 11% p.a. for
25 years.
Multiply this amount by 85. Monthly repayment = $9.80 85
Monthly repayment = $833
1
2
11
WORKEDExample
Loan repayments
1 Use the table of repayments on pages 1278 to calculate the monthly repayment on a
$75 000 loan at 7% p.a. over a 15-year term.
2 Use the table of repayments to calculate the monthly repayment on each of the
following loans.
a $2000 at 8% p.a. over a 2-year term
b $15 000 at 13% p.a. over a 5-year term
c $64 000 at 15% p.a. over a 25-year term
d $100 000 at 12% p.a. over a 20-year term
e $174 000 at 9% p.a. over a 22-year term
3 Jenny buys a computer for $4000 on the following terms: 10% deposit with the balance
paid in equal monthly instalments over 3 years at an interest rate of 14% p.a.
a Calculate Jennys deposit.
b Calculate the balance owing on the computer.
c Use the table of repayments to calculate the amount of each monthly repayment.
The Radley family borrow $160 000 for a home at 8% p.a. over a 20 year term. They repay
the loan at $1400 per month. If the interest rate rises to 9% p.a., will they need to increase
their repayment and, if so, by how much?
THINK WRITE
Look up the table to nd the monthly
repayment on $1000 at 9% p.a. for
20 years.
Multiply this amount by 160. Monthly repayment = $9.00 160
Monthly repayment = $1440.00
If this amount is greater than $1400,
state the amount that the repayment
needs to rise.
The Radley family will need to increase their
monthly repayments by $40.
1
2
3
12
WORKEDExample
1. The amount of each monthly repayment is best determined by using a table of
repayments.
2. The amount of each repayment is calculated by multiplying the monthly
repayment on a $1000 loan by the number of thousands of the loan.
remember
3D
WORKED
Example
11
4 Mr and Mrs Dubois borrow $125 000 over 20 years at 10% p.a. to purchase a house.
They repay the loan at a rate of $1500 per month. If the interest rate rises to 12% p.a.,
will Mr and Mrs Dubois need to increase the size of their repayments and, if so, by how
much?
5 Mr and Mrs Munro take out a $180 000 home loan at 9% p.a. over a 25-year term.
a Calculate the amount of each monthly repayment.
b After 5 years the balance on the loan has been reduced to $167 890. The interest
rate then rises to 10% p.a. Calculate the new monthly repayment required to
complete the loan within the existing term.
6 A bank will lend customers money only if they believe the customer can afford the
repayments. To determine this, the bank has a rule that the maximum monthly
repayment a customer can afford is 25% of his or her gross monthly pay. Darren
applies to the bank for a loan of $62 000 at 12% p.a. over 15 years. Darren has a
gross annual salary of $36 000. Will Darrens loan be approved? Explain your
answer.
7 Tracey and Barry have a combined gross income of $84 000.
a Calculate Tracey and Barrys gross monthly income.
b Using the rule applied in the previous question, what is the maximum monthly
repayment on a loan that they can afford?
c If interest rates are 11% p.a., calculate the maximum amount (in thousands) which
they could borrow over a 25-year term.
8 Mr and Mrs Yousef borrow $95 000 over 25 years at 8% p.a. interest.
a Calculate the amount of each monthly repayment on the loan.
b Mr and Mrs Yousef hope to pay the loan off in a much shorter period of time. By
how much will they need to increase the monthly repayment to pay the loan off in
15 years?
Loan repayments
Using Excel
Use the Loan repayments weblink in your eBookPLUS and download the
spreadsheet.
This spreadsheet shows the graph of a home loan of $100 000 at 6% p.a. that is
Use the graph to determine how long it takes for the outstanding balance to reduce
to:
1 $80 000
2 $50 000
3 $20 000.
4 Next, change the amount borrowed in the spreadsheet to $200 000. Does it take
the same length of time for the outstanding balance to be halved?
5 Change the interest rate to 12% p.a. and the amount borrowed back to $100 000.
Does it still take the same length of time for the balance to be halved?
6 Experiment with different loans and look for a pattern in the way in which the
balance of the loan reduces.
WORKED
Example
12
eBookplus eBookplus
Digital doc:
WorkSHEET 3.1
eBookplus eBookplus
Digital doc:
Spreadsheet
206 Loan repayments
i
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Using the Casio fx-9860G AU graphics calculator
The features used in this investigation are available in the nancial section of the
Casio graphics calculator. The instructions given refer to the Casio fx-9860G AU
version. You are advised to consult with your manual before commencing, so you
are familiar with the variables and terms. The compound interest section provides a
function enabling a periodic payment on a loan or investment account to be
determined.
The amortisation section provides the facility to display:
the interest and principal portion of each instalment
the balance of the principal after any instalment
the total interest paid on the loan to any particular point
a graph showing the progress of the loan.
Imagine you obtain a $100 000 housing loan. The interest rate on the loan is
6% p.a. on a monthly reducing balance. You agree to repay the loan plus interest in
equal monthly instalments over a period of 20 years.
Task 1
Enter the compound interest function of the nancial section. From the main
, select TVM and press (CMPD). From the problem posed above,
you have the following information:
number of years = 20
interest rate = 6
present value = 100 000
period of payment = monthly
reducing interest period = monthly.
(Continued )
MENU F2
This enables you to enter the following data:
n = 20 12 = 240 (There are monthly payments over 20 years.)
I% = 6
PV = 100 000
PMT = 0 (There should be no value here at this stage.)
FV = 0 (This value is unknown at this stage.)
P/Y = 12 (Payments are monthly; that is, 12 per year.)
C/Y = 12 (Interest is calculated monthly.)
Press (PMT) to display the monthly payment
required. Your screen should display
PMT = 716.4310585.
So, a monthly payment of $716.43 is required to
repay the loan over 20 years.
Press (REPT) to return to the compound
interest screen, and then nd the future value of the
loan by pressing (FV). Your screen should
display FV = 0 (meaning that the loan has been
paid off).
Task 2
Enter the amortisation section through the
(AMT).
PM1 represents the rst instalment period of
instalments from 1 through to n.
PM2 represents the second instalment period of
instalments from 1 through to n.
Let us say we are interested in the whole term of the loan; that is, periods 1 to 240.
Start with the following data: PM1 = 1 (instalment 1) PM2 = 240 (instalment 240)
The other entries should be complete from the previous calculations.
1 Looking at the interest and principal portion
of each instalment
The INT function shows the interest portion
of instalment PM1.
The PRN function shows the principal portion
of instalment PM1.
Pressing (INT) accesses the INT function,
which indicates that the interest component of
instalment 1 is $500. Pressing (REPT) (to
repeat) then (PRN) accesses the PRN
function, which shows that the principal
component of instalment 1 is $216.43.
This means that only about 30% ($216.43 $716.43 100) of the rst
instalment goes towards paying off the principal; the remainder is consumed in
interest charges.
Change PM1 to a value of 2. What change is there in the interest and
principal components of instalment 2?
F4
F1
F5
F4
F2
F1
F3
Investigate the change in these components as you change the PM1 value
through to 240 (the last instalment).
2 Looking at the balance of the principal after
any instalment
The BAL function displays the balance of
principal after PM2.
Enter a value of 1 for PM2. You should nd that
the balance on the loan after the rst payment is
$99 783.57; that is, only $216.43 has been paid
off the loan.
Change the PM2 value and see what happens over the duration of the loan.
3 Looking at the total interest paid on the loan to
any particular point
The SINT function displays the total interest
paid from instalment PM1 to (and including)
instalment PM2. Enter a value of 1 for PM1 and
2 for PM2. This would display the total interest
paid on instalments 1 and 2. You should nd that this value is $998.92.
Investigate to determine the total interest payable over other time periods. You
should compare the interest paid in the rst two instalments with that paid in
the last two instalments. What do you notice?
4 Looking at a graph showing the progress of the
loan
The screen displaying the above results shows a
graphing facility at (GRPH). Press this
button to display a graph showing the progress of
the loan. Pressing (TRCE) will
allow you to trace the curve. The interest (INT)
and principal (PRN) are displayed for each
instalment (n) by pressing .
Using the TI-Nspire CAS graphics calculator
The features used in this investigation are available in the nance section of the
TI-Nspire CAS graphics calculator. You are advised to consult with your manual
before commencing, so you are familiar with the variables and format of the
functions.
The nance section enables us to examine aspects of periodic payments on loans
or investment accounts.
the interest SInt( and principal SPrn( portion of each instalment
the balance bal( of the principal after any instalment
the total interest SInt( paid on the loan to any particular point
(Continued )
F6
SHIFT F1

For the TI-Nspire
Task 1
To calculate the monthly repayment required to
pay off the loan of $100 000 in 20 years, press:
HOME c
1: Calculator 1
MENU b
8: Finance 8
1: Finance Solver 1.
From the information given, enter the data as
shown.
n = 12 20 = 240 (Monthly payments for 20 years)
I% = 6
PV (present value) = 100 000
PMT = 0 (this is the value required)
FV (future value) = 0 (loan paid off)
PpY = 12 (Payments are monthly 12 per year)
CpY = 12 (Interest is calculated monthly).
Note: CpY: 12 is off screen.
Press Tab e to move between elds.

Press Tab e to move to the Pmt eld and then
press ENTER .
The screen displays a monthly payment of
$716.43.
Press Tab e to move to the FV eld and then
press ENTER .

Task 2
The values for n, I, PV, PMT, FV, PpY and CpY have been stored as variables.
To see any of these values, press:
Esc d
Var h.
Select any of the options and press ENTER . The value will be displayed.
The TI-Nspire CAS calculator has the capacity to calculate the interest paid, principal
paid and balance at various points throughout the loan repayment schedule.
1 Looking at the interest and principal portion of each instalment.
To calculate the interest paid on the rst
payment, press:
MENU b
8: Finance 8
3: Amortization 3
3: Interest Paid 3.
The format of the expression is:
SInt (nPMT1, nPMT2, n, I, PV, PMT,
FV, CpY, P pY).
To show the interest on the rst payment,
nPMT1 is 1 and nPMT 2 is 1. To retrieve the
values of n, I, PV, PMT, FV, CpY and PpY,
press the var h key, select them in the
correct order, separating each by a comma.
SInt(1, 1, tvm.n, tvm.i, tvm.pv, tvm.pmt, tvm.fv,
tvm.cpy, tvm.ppy).
Then press ENTER .
The interest paid on the rst payment is $500.
To see the principal component of Instalment 1,
press:
MENU b
8: Finance 8
3: Amortization 3
4: Principal Paid 4.
SPrn(1, 1, tvm.n, tvm.i, tvm.pv, tvm.pmt, tvm.fv,
tvm.cpy, tvm.ppy).
Then press ENTER .
This shows only $216.43 of the $716.43 (30%)
goes towards paying off the principal; the
remainder is interest.

To display the principal component of payment 2, repeat the previous
procedure, and enter in the formula:
SInt(2, 2, tvm.n, tvm.i, tvm.pv, tvm.pmt, tvm.fv, tvm.cpy, tvm.ppy), then press
ENTER .
Describe what you notice.
Investigate the change in the interest and principal components as the loan
progresses from payment 1 to payment 240 (the last instalment).
2 Looking at the balance of the principal after any instalment
To calculate the balance of the loan after the
rst payment, press:
MENU b
8: Finance 8
3: Amortization 3
2: Balance 2.
S bal(1, tvm.n, tvm.i, tvm.pv, tvm.pmt, tvm.fv,
tvm.cpy, tvm.ppy).
Then press ENTER .
(Continued )
The balance on the loan after the rst payment is $99 783.60. Change the
payment number and investigate what happens over the duration of the
loan.
3 Looking at the total interest paid on the loan to any particular point.
To nd the total interest paid on instalments 1
and 2, Complete the entry line as:
S Int(1, 2, tvm.n, tvm.i, tvm.pv, tvm.pmt, tvm.fv,
tvm.cpy, tvm.ppy).
The total interest paid on instalments 1 and 2
is $998.92.
Investigate the total interest payable over other
time periods.

Compare the interest paid in the rst two instalments with that paid in the last
two instalments. What do you notice?
4 Looking at a graph showing the progress of the loan.
To change the window settings to suitable
values, press:
HOME c
MENU b
4: Window 4
Enter the values as shown and select OK.

To graph the progress of the loan, press:
MENU b
3: Graph Type 3
2: Parametric 2.
x1(t) = t
y1(t) = bal(t, 240, 6, 100 000, 716.43, 0, 12, 12)
0 t 240 tstep = 10.
Then press ENTER .
To trace the balance over the life of the loan,
press:
MENU b
5: Trace 5
1: Graph Trace 1.
Move the cursor along the curve to trace the
balance of the loan as time progresses.
Bonds, debentures and term deposits
Debentures
If a company needs money, one option is for it to offer a debenture (a legal document
detailing an investment agreement) for sale to the public. An investor will pay an
amount of money (principal) to the company, and in return the company agrees to pay
the investor interest at regular intervals (monthly, quarterly or yearly). At the end of the
agreed term the principal is returned to the investor. The advantage of the debenture is
two-fold: rst, the company has the use of the money during the agreed period to make
more money for the company; and second, the investors know what their return will be
for each period and are guaranteed the return of the principal.
Term deposits
Term deposits allow an investor to lend money to a bank or building society for a
particular length of time. The money cannot be withdrawn during the agreed period
but earns a better interest rate than in a normal savings account. At the end of the
term the interest plus the principal is paid back to the investor. The advantage of the
term deposit is that the money is secure and the interest rate is better than that on a
savings account. The disadvantage, of course, is that if the money is needed during
the period it cannot be withdrawn (except under special circumstances agreed to by
the bank).
Task 3
You should now be familiar with the functions in the amortisation section of your
calculator. Conduct further investigations of your own so you can provide a report
on the following situation.
Cathy and Noel Jackson are considering purchasing a home. They would need a
loan of $175 000. The best deal they can arrange is at 6.5% p.a. on a monthly
reducing balance over a period of 25 years. They have compiled a list of questions
they would like answered.
1 What would be the monthly repayment?
2 What total interest would be paid over the period of the loan?
3 If the house is sold after 10 years, how much would be owing on the loan?
4 At what point in time would half the loan have been repaid?
5 If an extra $100 per month is paid, by how much could the term of the loan be
reduced?
6 If the interest rate rose to 7% p.a., what difference would this make to the
monthly instalment?
7 At what stage of the loan is the interest component of the instalment equal to
the principal component?
Compile a report to answer these questions for the Jacksons.
Source: www.ratecity.com.au
Investment bonds
Investment bonds are another form of investment which is offered to the investor by a
bank or the government, and interest is paid on the investment monthly, quarterly, six
monthly or annually. The one advantage is that the bond can be sold to someone else
during the period before the maturation date. This allows the investor some exibility if
the money is needed during the period of investment.
All the above investment types offer advantages to the investor and to the institution.
The institution has the use of the money over a xed period and the investor receives
higher than normal interest. All of these investments carry some risk and individuals
must decide on which type to use based on personal circumstances.
Bonds, debentures and term deposits are simple interest accounts.
Jaclyn buys $50 000 worth of debentures in a company. She earns 9.5% p.a. simple
interest, paid to her quarterly (that is, every 3 months). If the agreed period of the
debenture was 18 months:
a calculate the amount of interest Jaclyn will earn for each quarter
b calculate the total amount of interest collected at the end of the term.
13
WORKEDExample
Townbank offers a term deposit account paying investors 12.5% p.a. simple interest
on investments over $100 000 for 2 years or more. Peta decides to invest $150 000 in
this account for 2 years. How much interest will Peta earn at the end of the
investment?
THINK WRITE
List the values of P, R and T.
P = 150 000
R = 12.5
T = 2
evaluate.
I =
= $37 500
Write your answer.
Petas $150 000 invested for 2 years will
earn $37 500.
1
PRT
100
-----------
2
3
150 000 12.5 2
100
---------------------------------------------
4
14
WORKEDExample
THINK WRITE
a Write the simple interest formula. a I =
List the values of P, R and T. P = 50 000
R = 9.5
T =
evaluate.
I =
= 1187.50
Write your answer. Jaclyn will earn $1187.50 for each quarter.
b There are 6 quarters in 18 months.
Alternatively, use the simple interest
formula with the new data.
b Total interest = $1187.50 6
= $7125
or
I =
= 7125
Write your answer. The total interest earned is $7125.
1
PRT
100
-----------
2
1
4
---
3
50 000 9.5
1
4
---
100
--------------------------------------
4
1
50 000 9.5 1.5
100
-------------------------------------------
2
Bonds, debentures and
term deposits
1 Spice Clothing company offers debentures paying 8% p.a. interest paid
quarterly for a period of 2 years. When $20 000 worth of Spice debentures
are purchased, calculate the total return on the investment.
2 Harry decided to invest $2000 in a term deposit for 18 months. The bank offered
10.5% p.a. interest paid each half-year. Calculate the interest Harry would earn on the
investment.
3 An investment bond is advertised as paying 10 % p.a. interest on a 3-year invest-
ment. Elise purchased a bond for $3000, but needed to sell it after 18 months. How
much will Elise receive at the end of her 18-month investment?
4 Rabbit debentures, worth $10 000, were purchased for a period of 15 months. The
debenture paid 12% p.a., payable each 3 months. What was the investment worth at
the end of the 15 months?
An investment bond is offered to the public at 9% p.a. Louise buys a bond worth $2000
that will mature in 2 years. How much in total will Louise receive at the end of the 2 years?
THINK WRITE
List the values of P, R and T. P = 2000
R = 9
T = 2
Substitute into the formula. I =
Use a calculator to evaluate. I = $360
Add interest to principal. A = P + I
A = 2000 + 360
= 2360
Write your answer. The $2000 investment bond will mature at the
end of 2 years to a total of $2360 at simple
interest of 9% p.a.
1
PRT
100
-----------
2
3
2000 9 2
100
------------------------------
4
5
6
15
WORKEDExample
1. Simple interest accounts include bonds, debentures and term deposits.
2. Read the question carefully: does it ask for the interest or the nal total
amount?
remember
3E
WORKED
Example
13
eBookplus eBookplus
Digital doc:
Spreadsheet
205 Simple interest
WORKED
Example
14
WORKED
Example
15
1
2
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5 JNK Bank offers term deposits on amounts above $5000 at 12% p.a. simple interest
payable each quarter for periods longer than 2 years. Mr Smith invests $6000 in this
term deposit for 2 years. What is Mr Smiths nal return on his money?
6 Mark purchases a $2500 investment bond earning 12 % p.a. interest paid yearly. The
bond matures after 2 years. What interest will Mark earn?
7
Debentures in TRADEX are issued at 9% p.a. simple interest. The interest gained on
an investment of $7000 over 3 years would be:
8
The rate of interest on a term deposit for 3 months is 4.25% per year. If $10 000 is
invested in the term deposit, the amount of interest earned over the 3 months is:
9
State government bonds pay interest of 7 % p.a. simple interest. Philippa invested
$2500 in the bonds which mature in 5 years. Philippas income each quarter would be:
10
ElCorp offers company debentures earning 8 % p.a. interest for an investment of
$5000 for 2 years. The interest on the investment is:
11
A term deposit is advertised stating that if $2500 is invested for 2 years the interest
earned is $285. The rate of interest per annum is:
12
A principal amount is invested in a bond that will accumulate to a total of $64 365
after 4 months at 6 % p.a. The principal is:
13 The following term deposit rates were advertised in a magazine.
A $630 B $1890 C $7630 D $88 90 E $18 900
A $106.25 B $141.67 C $425 D $1062.50 E $1275
A $45.31 B $135.94 C $181.25 D $725 E $2718.77
A $170 B $212.50 C $825 D $850 E $5850
A 0.114% B 5.7% C 10% D 11.4% E 17.5%
A $6300 B $50 000 C $60 000 D $63 000 E $63 336
Term Rate
3059 days 4.2% p.a.
60149 days 4.7% p.a.
150269 days 5.0% p.a.
270365 days 5.4% p.a.
1
2
---
1
4
---
multiple choice
multiple choice
multiple choice
1
4
---
multiple choice
1
2
---
multiple choice
multiple choice
1
2
---
Toni Ford had $5500 to invest. Calculate her
return if she invested the money in a term
deposit with this bank for:
a 35 days
b 120 days
c 1 year.
Hint: Express days as a fraction of a year.
14 Dennis and Delia have $7500 to invest. They know
that they will need the money in 18 months but are
not sure how to invest it. While reading a maga-
zine, they see the following three advertisements:
i investment bonds offered at 12 % p.a. interest
paid each 6 months
ii debentures in a company paying 12% p.a. with
interest paid each quarter
iii a term deposit paying 11 % p.a. interest paid
each 3 months.
a Calculate their total return on each investment.
b What did you notice about the time in which the interest was calculated?
Bank savings accounts
Most banks offer their customers savings accounts with interest that is usually paid on:
1. the minimum monthly balance, or
2. the daily balance.
The interest is added at a specied time say once or twice a year as nominated
by the bank, for example, on the rst day of June and December of each year. The more
frequently the interest is added, the better for the customers.
Savings accounts minimum monthly balances
To calculate interest on a minimum monthly balance saving account, the bank looks
at the balances of the account for each month and calculates the interest on the smallest
balance that appears in each month.
The minimum monthly balance method is used in the next worked example.
1
2
---
3
4
---
At the beginning of March, Ryan had $621 in his savings bank account. On 10 March he
deposited $60. If the bank pays 8% p.a. interest paid monthly and calculated on the
minimum monthly balance, calculate the interest Ryan earns in March.
THINK WRITE
The smallest balance for March is
$621, as the only other transaction in
that month increased the balance.
Minimum monthly balance for March is $621.
List the values of P, R and T. P = 621
R = 8
T =
evaluate.
I =
= 4.14
Write your answer. The interest earned for the month of March
was $4.14.
1
2
PRT
100
-----------
3
1
12
------
4
621 8
1
12
------
100
-----------------------------
5
16
WORKEDExample
Savings accounts daily balances
To calculate the interest on a daily balance saving account, the bank looks at the
balances of the account. The number of days each balance is maintained is used to
calculate the interest. When doing these calculations for yourself, you need to set out
your workings carefully, for example using tables.
Lets investigate Worked example 17 again, using the daily balance method.
The above bank statement shows the transactions for July. Find the interest that will be
earned in July if the bank pays 7% p.a. simple interest on the minimum monthly
balance.
Date Deposit Withdrawal Balance
3/7
7/7
21/7
28/7
$100
$500
$ 50
$678
$337.50
$837.50
$159.50
$209.50
THINK WRITE
To nd the smallest balance for July,
look at all the running balances. Also
check balances at the start and end of
the month. Notice that the balance on
1 and 2 July, if shown, would have been
$237.50.
Minimum monthly balance for July is $159.50.
List the values of P, R and T.
P = 159.50
R = 7
T =
evaluate.
I =
= 0.93
Write your answer.
The interest earned for July was $0.93.
1
2
PRT
100
-----------
3
1
12
------
4
159.50 7
1
12
------
100
------------------------------------
5
17
WORKEDExample
The daily balance method offers more interest than the minimum monthly
balance method, as it credits the customer for all monies in the account, including
the $500 deposited for 14 days.
The Casio fx-9860G AU and TI-Nspire CAS graphics calculators both have functions
which will calculate the number of days between dates. This can be helpful in interest
calculations involving daily balances.
Daily balance method
Use the daily balance method and the bank statement shown in Worked example 17 to nd
the interest that will be earned in July, if the bank pays 7% p.a. simple interest on the
daily balance.
THINK WRITE
Set up a table showing each new
balance and the number of days
the balance applies. Look at all
running balances including those
for 1 and 31 July.
Calculate the interest for each
balance. As the interest rate is in %
per annum, express the number of
days as a fraction of a year; for
example, 2 days = of a year.
Sum the interest. The calculations
were to hundredths of a cent for
accuracy.
Interest for month = $2.9734
Round off to the nearest cent. $2.9734 $2.97
Write your answer. The interest earned for July was $2.97.
1
Balance
$
Number
of days
the
balance
applies
Simple interest
calculations
$
Interest
earned
$
$237.50 2 $0.0911
$337.50 4 $0.2589
$837.50 14 $2.2486
$159.50 7 $0.2141
$209.50 4 $0.1607
237.50 7
2
365
---------
100
--------------------------------------
337.50 7
4
365
---------
100
--------------------------------------
837.50 7
14
365
---------
100
--------------------------------------
159.50 7
7
365
---------
100
--------------------------------------
209.50 7
4
365
---------
100
--------------------------------------
2
2
365
---------
3
4
5
18
WORKEDExample
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating the number
of days between dates
To nd the number of days between
15 December 2008 and 15 Jan 2009.
Press:
C: TVM
(
)
(DAYS).
The dates are entered in the form
MMDDYYYY (prompting occurs for each
one). Enter values for d1 and d2. This
screen shows the days between
15 December 2008 and 15 January 2009
Press (PRD) to show the number of
days between these two dates.
For the TI-Nspire
To nd the number of days between:
(a) 21 April and 12 October
(b) 15 December 2008 and 15 Jan 2009.
Press:
HOME c
1: Calculator 1.
dbd(2104,1210)
dbd(1512.08,1501.09).
Dates are expressed in the form DDMM (if
no year is mentioned) or DDMM.YY (if a
year is specied).
MENU
F6
F2
F1
1. Two methods used by banks for calculating interest on savings accounts are:
(a) minimum monthly balances
(b) daily balances.
2. Daily balances offer the best interest rate for investors.
3. Look at the balances on the rst and last day of the month when establishing
the minimum monthly balance or daily balances.
4. Express days as a fraction of a year; for example, 1 day = of a year.
1
365
---------
remember
Bank savings accounts
1 A bank savings account showed that the opening balance for the month was
$2150. That month Paul paid the following bills out of the account:
Electricity $21.60 Telephone $10.30 Rent $52.00
Paul also deposited his wage of $620 for the month into the account.
a What was Pauls minimum monthly balance?
b If the bank pays 5.5% p.a. paid monthly on the minimum monthly balance,
how much interest did Paul earn in the month?
2
Robertas bank statement shows the above transactions for May. Find the interest
Roberta will earn in May if the bank pays 6% p.a. simple interest:
a on the minimum monthly balance
b on the daily balance.
3 For the month of July, Rhonda received $3.20 in interest on her savings account.
Rhondas minimum balance in July was $426.20. What was the per annum simple
interest rate offered by the bank?
4 Kristen receives the following statement from her bank. Due to a computer error the
interest and balances were not calculated.
Kristen rang the bank and was told that she received interest at a rate of 6 % p.a.
paid monthly on her minimum monthly balance. Copy out Kristens statement and ll
in the balances and interest payments.
1/5
3/5
7/5
19/5
27/5
$12
$10
$16
$ 8
$27.50
$39.50
$23.50
$15.50
$25.50
Date Transaction Debit Credit Balance
1 May Balance B/F 2132.20
3 May Cheq 4217 460.27
7 May Deposit 230.16
17 May Cheq 4218 891.20
26 May Wages 1740.60
31 May Interest _______
2 June Deposit 415.10
8 June Cheq 4220 2217.00
19 June Cheq 4219 428.50
21 June Cheq 4222 16.80
23 June Wages 1740.60
30 June Interest _______
1 July Deposit 22.80
4 July Cheq 4221 36.72
18 July Cheq 4223 280.96
26 July Wages 1740.60
31 July Interest _______
3F
WORKED
Example
16
eBookplus eBookplus
Digital docs:
SkillSHEET 3.5
Minimum monthly balance
Spreadsheet
204 Home loan
calculations
WORKED
Example
17
WORKED
Example
18
3
4
---
5 Using the bank statement from question 4, another bank offers to show Kristen that
daily balance interest credited each quarter is more rewarding. The interest is still
6.75% p.a. but is only credited at the end of the quarter, that is, on 31 July. Calculate:
a the interest for the quarter ending July
b the increase in interest earned using the daily balance method.
Hint: This could be done using a spreadsheet.
6 Clark Kent has the following income and expenses for August and September.
Income: $1410.20 salary each fortnight beginning 4 August
$461.27 income tax refund on 5 September
$68.20 cheque from health fund on 10 August
Expenses: $620.80 rent on 20 August and 20 September
$180.64 telephone account on 2 September
$150.26 electricity account on 15 August
$180.00 Visa account on 30 August
$327.60 health fund on 5 August and 5 September
Draw up a statement (as for question 4) for Clark, remembering that he receives
7 % interest paid on the last day of each month on the minimum monthly balance in
the account.
7 If the savings interest rate is 2 % p.a., calculate the interest credited at the end of each
quarter for the following accounts using:
i the minimum monthly balance
ii the daily balance.
Also calculate:
iii the increase in interest earned using the daily rather than the minimum monthly
balance method.
a The third quarter statement for July, August and September
b The rst quarter statement for January, February and March in 2008
c The fourth quarter statement for October, November and December.
3/7
7/8
21/8
28/8
20/9
$ 500
$ 670
$10 000
$100
$420
$ 750.00
$ 1 250.00
$ 1 920.00
$ 1 500.00
$11 500.00
31/12/2007
1/2/2008
1/3/2008
28/3/2008
$100
$600
$ 50
$100
$400.00
?
?
?
3/10
17/12
21/12
22/12
28/12
$2 100
$3 500
$1 900
$ 400
$ 650
$2 450.00
$5 950.00
$4 050.00
$3 650.00
$3 000.00
1
2
---
1
2
---
1 Calculate the amount of at rate interest payable on a loan of $4500 at 21% p.a. over
a 3-year term.
2 A loan of $2000 is repaid over 1 year at a rate of $100 per week. Calculate the rate of
interest charged on the loan.
3 A loan of $120 000 at 11% p.a. reducible over 20 years is repaid at $1238.63 per
month. The bank also charges an $8 per month account management fee. Calculate
the total cost of repaying the loan.
4 A loan of $5000 is advertised at a rate of 9% p.a. at rate interest for a term of
4 years. Use the formula to calculate the effective rate of interest on
this loan (correct to 1 decimal place).
5 A loan of $10 000 at 11% p.a. reducible interest is repaid over 4 years at a rate of
$258.46 per month. Calculate the equivalent at rate of interest charged on the loan
(correct to 1 decimal place).
6 Calculate the monthly repayment on a $1000 loan over a 2 year term at 8% p.a.
7 What monthly repayment would be necessary on a $20000 loan over a 10-year term at
10% p.a.?
8 What would be the quarterly earnings on a debenture worth $20 000 earning 7.5% p.a.
simple interest?
9 A term deposit of $5000 is invested for 2 years at 8.25% p.a. simple interest. How
much would be collected when the term deposit is paid out?
10 How much interest would Tom earn on his bank account for the month of January if
his minimum monthly balance was $825 and his bank paid 3.25% p.a. interest?
Investing in real estate
Real estate transactions
When buying or selling property, most people consult a real estate agency. An agent
acts on behalf of the seller and receives a fee, called a commission. The commission
rate can vary slightly, but a common rate used is:
5% of the rst $18 000 plus
2.5% of the remainder of the sale price.
A 10% Goods and Services Tax (GST) charge is then applied to the agents com-
mission. This money is a tax applied by the government.
The seller is responsible for the agents commission and the GST charge. This
money is subtracted from the sale price of the property.
2
E
1 r + ( )
n
1
n
---------------------------- =
When a property is transferred from one name to another, transfer duty is payable on
the transaction. This is a government tax and is paid by the purchaser. Different scales
exist for commercial properties and rst-home buyers. A transfer for a principal place
of residence (where the purchaser lives not a rented property) for other than a rst-
home buyer attracts the following transfer duty charges.
Purchase price/value Transfer duty
Up to $350 000 $1.00 for each $100 or part of $100
$350 001 to $540 000 $3500 + $3.50 for every $100 or part of $100 over $350 000
$540 001 to $980 000 $10 150 + $4.50 for every $100 or part of $100 over $540 000
More than $980 000 $29 950 + $5.25 for every $100 or part of $100 over $980 000
How much will Bill receive from the sale of his unit if a real estate agent sells it for $124220?
THINK WRITE
Calculate the commission on the
sale price.
Commission
= 5% of $18 000 + 2.5% of ($124 220 $18 000)
= 5% of $18 000 + 2.5% of $106 220
= $900 + $2655.50
= $3555.50
Calculate the GST (10% of
agents commission).
GST = 10% of $3555.50
GST = $355.55
Subtract commission and GST
from the sale price.
Amount received from sale
= sale price commission GST
= $124 220 $3555.50 $355.55
= $120 308.95
Write the answer. Bill will receive $120 308.95.
1
2
3
4
19
WORKEDExample
When Hes buys Bills unit for $124 220, what will be the total cost of his purchase?
THINK WRITE
The buyer is responsible for
transfer duty charges. Locate the
correct category.
Transfer duty = $1 per $100 or part of $100
Find the number of lots of $100.
Any part lots must be rounded up
to the next whole number.
No. of $100 lots = $124 220 $100
= 1242.2
= 1243 (rounded up)
Calculate the transfer duty. Transfer duty = $1 1243
= $1243
Add the transfer duty to the cost
of the house.
Total cost of purchase = house cost + transfer duty
= $124 220 + $1243
= $125 463
1
2
3
4
20
WORKEDExample
What transfer duty would be paid on a house purchased for $375 410?
THINK WRITE
Locate the correct category
for transfer duty.
Transfer duty = $3500 + $3.50 per $100
or part of $100 over $350 000
Calculate the amount over
$350 000.
Amount over $350 000 = $375 410 $350 000
= $25 410
Calculate the number of lots
of $100 in this amount
(round up to the next whole
number if necessary).
No. of $100 lots = $25 410 $100
= 254.1
= 255 (rounded up)
Calculate the transfer duty. Transfer duty = $3500 + $3.50 255
= $3500 + $892.50
= $4392.50
1
2
3
4
21
WORKEDExample
For commission and transfer duty rates, refer to the scales on pages 148 and 149.
1 Calculate the commission payable on the sale of units valued at:
a $79 950 b $128 250 c $462 000.
2 What GST would be due on the unit in question 1?
3 What proceeds would be obtained from the sale of the units in question 1?
4 What would the purchaser pay for the unit in question 1a?
5 Calculate the transfer duty payable on the purchase of units valued at:
a $187 250 b $269 240 c $542 120.
6 What would the purchaser pay for the units in question 5?
7 Ian sold his unit for $275 000 and upgraded to a residence with a sale tag of $475 000.
a What did he receive from the sale of his unit?
b How much did his new residence cost him?
c How much did Ian pay in charges for this upgrade?
8 Bob sold his house to Chris for $420 000. Bob was liable for the commission and
GST costs while Chris had to pay transfer duty for the transaction. How much more
did Chris pay for the house than Bob received from the sale?
9 The Gardner family paid $3637.50 in commission to the real estate agent who sold
their unit. What was the sale price of their unit?
10 Jim and Nancy paid $4725 in transfer duty when they purchased their new home.
What was the total cost of their home?
11 The transfer duty payable on Gordon and Jennys new home was $13 750. What was
the advertised sale price of the home?
1. In real estate transactions, the real estate agent acts on behalf of the seller.
2. The seller is responsible for the agents commission.
3. A GST is also paid by the seller on the agents commission. This money is
collected by the government.
4. The seller receives the sale price minus the commission and GST charges.
Proceeds from sale = sale price commission GST
5. The purchaser is responsible for transfer duty charges in the transfer of the
property name.
6. The cost to the purchaser is the sale price plus transfer duty charges.
Cost to purchaser = sale price + transfer duty.
remember
3G
WORKED
Example
19
WORKED
Example
20
WORKED
Example
21
Rent or buy?
Although the Australian dream is to own your own home, the option of renting
may be more nancially viable, particularly if the purchase of a home is only for a
short period (for example, 3 or 4 years).
Consider the following case scenario.
The Ling family has just moved to Queensland from interstate. They plan to
stay in Queensland for only 3 years, after which time Mr Ling will receive a
transfer to his companys Sydney ofce. Should they purchase a house,
knowing that they will have to sell in 3 years time; or should they simply rent
for the 3 years?
Mr Ling has jotted down costs associated with purchasing and renting. These are
itemised below.
Purchasing
Consider purchasing a home for $400 000.
Savings to be used for the purchase are $50 000.
Purchase expenses of $10 000 are to be allowed. This money will come from
savings.
Remaining $40 000 provides the 10% deposit for the housing loan.
Repayments on the $360 000 home loan are $2500 per month.
House maintenance costs (maintenance, rates and insurance) are estimated to be
$3000 per year.
Say the house sells for $475 000 in 3 years time.
Real estate sale costs estimated at $12 000.
Estimate the balance owing on the loan before the sale to be $340 000.
Renting
Estimated rent on a house valued at $400 000 is:
$400 per week for the rst year
$420 per week for the second year
$450 per week for the third year
Invest the $50 000 savings in a term deposit for 3 years at 7.5% p.a. compounding
monthly.
An extra $10 000 can be saved each year since rent costs are lower than house
repayments. This money can be invested at the end of each year at 6.5% p.a.
compounding monthly.
1 Draw up a spreadsheet detailing the costs associated with buying and renting
over the 3-year period.
2 Write a report to Mr and Mrs Ling recommending whether they should buy or
rent. Support your decision by referring to gures in your spreadsheet.
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
Investing in the stock market
Investment options
When it comes to investing funds, there are three broad areas to be considered. These
are shares, interest-bearing deposits and property. Although there have been short-term
uctuations in these areas, over the long term, domestic shares have been shown to per-
form well. Consider the following graph.
Source: ASX
Depositing money in banks and similar nancial institutions is the most common type
of investment, as it is safe and the return can be calculated in advance.
There is an element of risk when investing funds by purchasing shares. The shares
have the potential to return more money to the investor than depositing money in a
bank; however, there is also the chance that the shares may fall in value.
The operations of the share market are quite complex. The following section looks at
a simplied version of its operations, providing adequate basic knowledge for the rst-
time investor.
Investment performance comparison over 10 years
R
e
t
u
r
n
s

(
%
)

p
.
a
.
12%
13.3%
13.2%
10.6% 10.6%
8.8%
12.7%
11.3%
9.0%
11.6%
9%
6%
3%
0%
Australian
shares
Australian
listed
property
Fixed
interest
Cash Residential
investment
property
5.6%
4.5%
2.9%
4.6%
2.4%
3.7%
Assets class
Gross return After tax top marginal tax rate
After tax lowest marginal tax rate
The share market
Over 40% of Australians have either a direct or indirect involvement in the Australian
share market. Many of these are recent rst-time investors who became involved
through participating in oats of Australian companies such as Woolworths, the
Commonwealth Bank and Telstra. In order to be a wise investor, it is essential to
understand the basic operations of the share market and the common terminology used.
The origin of stock exchanges is traced back to thirteenth century Italy. By way of
comparison, the rst stockbroking operations started in Australia in 1829. The Sydney
Morning Herald newspaper began publishing daily quotations of share prices in 1837. In
1987, the six Australian state exchanges united to form the Australian Stock Exchange
(ASX). Trading on the ASX by the end of the year 2000 had typically increased to record
more than 50 000 trades daily. The ASX is accessed through the World Wide Web. Con-
duct a search to investigate the resources available through the site.
How does a company become listed on the stock exchange? Some companies
reach a point where, in order to expand, the company needs a substantial injection
of capital. Instead of borrowing this money, companies can raise the funds from the
general public. As long as the company complies with prerequisite standards set by
the ASX, it can apply to become a publicly listed company. It can then oat or
list the company on the share market and initially sell shares to the public at a
nominated price per share. This initial price is the face or par value of the share,
which remains xed. After this stage, the shares can be traded readily on the stock
exchange. If the company is considered to have potential, and demand for its shares
is high, the share price will rise. If, on the other hand, the demand for the shares is
low, the price would fall. The price of the share traded on the stockmarket is
known as the market price. This price typically varies in the market at any time.
When a company has been operating for a while, if a prot is made, the company
can decide to distribute some of this prot to shareholders as a dividend. The company
can keep some of the money for expansion of the business. A dividend is usually
quoted as cents per share, for example, 15 cents per share.
In buying and selling shares on the stockmarket, the broker doing the trading for you
charges a fee, called brokerage. This fee is added to the cost of the shares when you
buy and subtracted from the sale price of the shares when you sell. Shares these days
are generally bought and sold via the Internet (brokerage still applies). These charges
(brokerages) can vary, but a common rate is:
$29.95 for transactions up to $10000
0.31% of the transaction value for those above $10000
Two important terms are the dividend yield and the priceearnings ratio. Expressed
mathematically, these can be dened as:
Dividend yield = 100%
This can be considered as the percent return on the money invested. It can be compared
with the effective interest rate on a bank deposit.
Priceearnings ratio =
This represents the number of years it would take for the prot earned to pay for the
shares.
dividend per share
market price of share
--------------------------------------------------
market price
earnings (that is, yearly profit)
-------------------------------------------------------------------------
Margaret bought 2000 XYZ shares at $7.40 each. What would it cost her to purchase
them?
THINK WRITE
The cost of the shares is made up of
the market price plus the brokerage
payable.
Total cost = market price + brokerage
Calculate the market price. Market price = $7.40 2000
= $14 800
Calculate the brokerage payable,
choosing the correct category.
Brokerage = 0.31% of $14 800
= $45.88
Find the total cost. Total cost = $14 800 + $45.88
= $14 845.88
1
2
3
4
22
WORKEDExample
If Margaret (Worked example 22) sells her 2000 shares for $7.44 each, we would expect
her to make a small prot. Is this the case? Explain.
THINK WRITE
The money received from a sale is
the market price minus the brokerage
charges.
Money received from sale
= market price brokerage
Calculate the market price. Market price = $7.44 2000
Market price = $14 880
Calculate the brokerage payable,
choosing the correct category.
Brokerage = $0.31% of $14 880
Brokerage = $46.13
Find the amount received. Money received from sale = $14 880 $46.13
Money received from sale = $14 833.87
Compare the cost with the amount
received from the sale.
Cost of shares = $14 845.88
Therefore, a small loss is made.
Loss = $14 845.88 $14 833.87
Loss = $12.01
Write an explanation. Even though the sale price per share is higher than
the buying price per share, the brokerage charged
on the two transactions erodes this prot margin.
1
2
3
4
5
6
23
WORKEDExample
A company has an after-tax prot of $34.2 million. There are 90 million shares in the
company. What dividend will the company declare if all the prots are distributed to the
shareholders?
THINK WRITE
Dividend is calculated by dividing the
prot by the number of shares.
Dividend = $34 200 000 90 000 000
Dividend = $0.38
Give a written answer. The dividend is 38c per share.
1
2
24
WORKEDExample
Paul bought 1000 Cottonworths shares at $5.75 per share. The company paid a yearly
dividend of 19.5 cents per share (assume that this is all the prots). Calculate:
a the total dividend received
b the dividend yield
c the priceearnings ratio (PE ratio).
THINK WRITE
a Total dividend = dividend per share
Total dividend = number of shares
a Total dividend = 19.5c 1000
Total dividend = $195
b Quote the rule for dividend yield. b Dividend yield
= 100
Substitute values (take care with
units).
= 100%
= 100%
Calculate the result. = 3.39%
c Quote the rule for priceearnings
ratio.
c PE ratio =
Substitute values (take care with
units).
PE Ratio =
PE Ratio =
Calculate the result. PE Ratio = 29.5
1
dividend per share
market price per share
-----------------------------------------------------
2
19.5c
$5.75
-------------
19.5c
575c
-------------
3
1
yearly profit per share
-----------------------------------------------------
2
$5.75
19.5c
-------------
575c
19.5c
-------------
3
25
WORKEDExample
Where brokerage calculations are appropriate, use the scale of charges on page 154.
Assume that all after-tax prots are paid as dividends.
1 What would be the cost of purchasing 5000 Quintex shares at $3.75 each?
2 Brisbane Bank shares are selling at $24.50 each. What would a parcel of 100 cost?
3 How much money would be received from the sale of 200 Reservation Bank shares at
$26 each?
4 Harry Wallman shares are selling at $3.20 each. After selling a parcel of 5000, how
much money would be received?
Unless stated otherwise, for the calculations in this exercise, assume that companies
distribute all their prots as dividends.
5 A company has issued 20 million shares and makes an after-tax prot of $5 million.
Calculate the dividend to be declared by the company.
6 A company that has 2 million shares makes a prot of $3 million. Calculate the
dividend that will be declared.
7 A company makes an after-tax prot of $150 000. If there are 2.5 million shares in the
company, calculate the dividend that the company will declare.
1. When shares are purchased, brokerage is added to the cost of the shares.
2. When shares are sold, brokerage is subtracted from the sale price of the
shares.
3. Brokerage is calculated depending on the value of the order.
4. An investment in shares earns money through dividend payments and by
increasing in value.
5. A dividend is a payment made to shareholders. It is calculated by dividing the
prot to be distributed to shareholders by the total number of shares in the
company.
6. To calculate the true worth of an investment we calculate the dividend yield.
The dividend yield is found by writing the dividend as a percentage of the
share price, that is,
Dividend yield = 100%.
7. The priceearnings ratio represents the number of years it takes for the
dividends to pay for the shares.
dividend per share
market price of share
--------------------------------------------------
yearly dividend per share
------------------------------------------------------------
remember
3H
WORKED
Example
22
WORKED
Example
23
WORKED
Example
24
8 A company with an after-tax prot of $1.2 million consists of 4.1 million shares.
Calculate the dividend the company will declare, in cents, correct to 2 decimal
places.
9 A company makes a before-tax (gross) prot of $3.4 million.
a If the company is taxed at the rate of 36%, calculate the amount of tax it must pay.
b What will be the after-tax prot of the company?
c If there are 5 million shares in the company, calculate the dividend that the com-
pany will declare.
10 A company makes a gross prot of $14.5 million and there are 8 million shares in the
company.
a Calculate the after-tax prot if company tax is paid at the rate of 36%.
b If $3.2 million is to be reinvested in the company, calculate the amount of money
that is to be distributed to the shareholders.
c Calculate the dividend that this company will declare.
11 A company declares a dividend of 78c. If there are 4.2 million shares in the company,
calculate the after-tax prot of the company.
12 A company with a share price of $10.50 declares a dividend of 48c per share. Calcu-
late the dividend yield for this company.
13 Copy and complete the table below.
14 Hsiang purchased shares in a company for $3.78 per share. The company paid
Hsiang a dividend of 11c per share. Calculate the dividend yield, correct to 2 decimal
places.
15
Which of the following companies paid the highest dividend yield?
A Company A has a share value of $4.56 and pays a dividend of 35c/share.
B Company B has a share value of $6.30 and pays a dividend of 62c/share.
C Company C has a share value of $12.40 and pays a dividend of $1.10/share.
D Company D has a share value of 85c and pays a dividend of 7.65c/share.
E Company E has a share value of $2.50 and pays a dividend of 20c/share.
Dividend Share price Dividend yield
$0.56 $8.40
$0.78 $7.40
$1.20 $23.40
$1.09 $15.76
$0.04 $0.76
WORKED
Example
25b
multiple choice
16 George bought $5600 worth of shares in a company. The dividend yield for that
company was 6.5%. Calculate the amount that George receives in dividends.
17 Andrea bought shares in a company for
$11.50 each. The company paid a dividend
of 76c/share.
a Calculate the dividend yield for this
company.
b One year later the share value is $12.12.
The company then has a dividend yield
of 8.75%. Calculate the dividend per
share.
18 A companys prospectus predicts that the dividend yield for the coming year will be
6.7%. Its share price is $21.50.
a Calculate the dividend paid if the dividend yield in the prospectus is paid.
b If there are 5.2 million shares in the company, calculate the after-tax prot of the
company.
19 Janice buys shares in a company at $5.76. The company pays a dividend in July of
22.7c and a dividend in February of 26.4c. Calculate the dividend yield for the whole
nancial year (July to the following June).
20 The dividend paid by a company for the 200809 nancial year was 5.6c/share, with
a share price of $9.50.
a Calculate the dividend yield for 200809.
b In the 200910 nancial year the share price rose by 12%. Calculate the share
price for this year.
c In 200910 the dividend paid to shareholders increased by 15%. Calculate the
dividend paid, in cents, correct to 1 decimal place.
d Calculate the dividend yield for 200910.
21 A companys shares are available at $12.80 each. The company paid a yearly divi-
dend of 15.5 cents per share. On a purchase of 500 shares, calculate:
c the priceearnings ratio.
22 A companys shares are selling at $5 each. They pay a yearly dividend of 6 cents per
share.
a What total dividend would a bundle of 1000 return?
b Determine the dividend yield.
c What is the priceearnings ratio of the shares?
23 A companys shares are selling at $6 each and returning an annual dividend of
4.5 cents per share.
a How many shares would need to be purchased to receive an annual dividend of
$225?
b What is the dividend yield of the shares?
c What is the priceearnings ratio?
24 A companys shares have a dividend yield of 4.3%. What is their priceearnings ratio?
WORKED
Example
25
Graphing share performance
Because shares offer no guaranteed returns, we can only use the past performance of a
share to try to predict its future performance. One simple way to do this would be by
graphing the value of the share at regular intervals and then drawing a line of best t to
try to monitor the trend.
By continuing the line of best t you can make a prediction for future share prices.
This is called extrapolating information from the graph. Interpolate is the opposite
of extrapolate and occurs when drawing a graph using data found between the end
points.
Many share traders use sophisticated analysis of graphs (charts) to determine both
short- and long-term movements of share prices, but this technical analysis is beyond
the scope of this book.
You should be able to produce your own graph to answer this type of question from a
set of data that you have been given or have researched.
The graph at right shows the share price of a company over
a 3-month period.
a On the graph draw a line of best t.
b Use your line of best t to estimate the share price after
another three months.
THINK WRITE
a Draw a line on the graph, which
best ts between the points
marked.
a
b Extend the line of best t for three
months and read the predicted
share price.
b The predicted share price is $4.80.
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3.80
3.60
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3.60
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4.00
4.20
4.40
4.60
4.80
26
WORKEDExample
Below is the share price of a company taken on the rst day of the month for one year.
a On a set of axes plot the share price for each month and draw a line of best t.
b Predict the share price in June of the following year.
Month Share price Month Share price
January $10.34 July $10.98
February $10.54 August $11.56
March $10.65 September $11.34
April $10.89 October $11.23
May $10.72 November $11.48
June $11.10 December $11.72
THINK WRITE
a Draw up a set of axes
and plot the data.
a
Draw a straight line on the
graph that best ts in with
the marked points.
b Extend the line of best
t for six months.
b
Predict the share price
by reading from the line
of best t.
The predicted share price is $12.35.
1
S
h
a
r
e

p
r
i
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e

(
$
)
Month
1
J
a
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1
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b
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1
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10.20
10.40
10.60
10.80
11.00
11.20
11.40
11.60
11.80
12.00
12.20
12.40
2
S
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p
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(
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1
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1
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1
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1
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10.20
10.40
10.60
10.80
11.00
11.20
11.40
11.60
11.80
12.00
12.20
12.40
1
2
27
WORKEDExample
Graphing share performance
1 The graph at right shows the movement in a share
price over a 3-month period.
a Copy the graph into your book and on it draw
a line of best t.
b Use your graph to predict the value of the share
after 6 months.
2 The graph at right shows the movement in a
share price over a 6-month period.
a Copy the graph into your book and on it
draw a line of best t.
b Predict the value of the share after a further
6 months.
3 The graph at right shows the movement
in a share price over a 9-month period.
a Copy the graph into your book and
on it draw a line of best t.
b Use your graph to predict the value
of the share after a further 12 months.
1. To try to predict possible future movement in share prices, we use the past
performance of the share.
2. Graphing the past share price allows us to examine trends by drawing a line of
best t on the graph.
3. We can then use the line of best t to predict the future price of a share.
remember
3I
WORKED
Example
26
S
h
a
r
e

p
r
i
c
e

(
$
)
Month
1
J
u
l
1
J
u
n
1
M
a
y
6.50
6.30
6.10
5.90
5.70
1
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c
1
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v
1
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1
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t
1
A
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1
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1
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1
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4.50
4.00
3.50
3.00
2.50
S
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e

p
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(
$
)
Month
S
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p
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(
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1
M
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1
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1
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1
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b
1
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1.02
1.04
1.06
1.08
1.10
1.12
1.14
4 The table below shows the share price of a large multinational company over a
12-month period.
a Plot the share prices on a set of axes and on your graph draw a line of best t.
b Use your graph to predict the value of the share after a further 6 months.
WORKED
Example
27
5 The table below shows the share price of BigCorp Productions Ltd over a period of one
year.
a Graph the share price for each month and show a line of best t.
b Use your line of best t to predict the share price after a further year.
eBookplus eBookplus
Digital doc:
WorkSHEET 3.2
History
of mathematics
T H E W A L L S T R E E T C R A S H
The sudden and virtually unanticipated Wall
Street Crash of 1929 caused crippling
widespread share price losses and consequent
hardships.
In October 1929, the barely forty-year-old
New York Stock Exchange (NYSE)
experienced an unprecedented collapse in
stocks that were traded in this market and the
shares in these stocks were virtually
worthless. This event, known as The Wall
Street Crash, is deemed to be the beginning
of the world-wide economic devastation
known as The Great Depression. Business
activity throughout the world was paralysed,
virtually overnight. The prior bull market,
in which there were more buyers than sellers,
ended with a precipitous fall in the market
prices of all stocks. The share scripts that
were held by business organisations and
individual investors were instantaneously
substantially devalued or worthless. Stock
markets throughout the world had many
sellers and virtually no buyers. Banks were
closed as depositors tried to withdraw their
money. Many of the banks were never to
open again. A complete loss of condence in
stock markets prevailed until the beginning of
the Second World War in 1939.
Questions
1 What caused the Wall Street Crash?
2 What happened to share prices at the
time of the crash?
3 What were the consequences of the
crash?
Research
What was the cause and outcome of the
Financial Crisis in 2008?
Stockmarket
Share market prices are published in the state and national newspapers daily. They
are also available on the ASX website. To conduct a search of the site and see the
facilities available, use the ASX weblink in your eBookPLUS. You might prefer to
conduct this investigation by gathering information from the web.
The Australian Information
Industrials
The Australian portrays industrial information like this:
Industrial shares
The rst column Code contains a four-digit identication code unique to the
share. Column 2 identies the name of the share. The third column, headed 4 pm
close, shows the price of the share at 4 pm. The Move column shows the change,
in dollars, that this closing price represents, compared with the previous closing
price (a negative sign indicating a downward movement in price and a positive sign
indicating an upward movement). The column Vol 100s shows how many shares
were traded on the day (in lots of 100). The Buy and Sell columns show the
prices that buyers are prepared to pay to purchase and the prices that sellers are
asking. The year High and Low columns show the highest and lowest prices of
the year. The last two columns show the dividend yield and the priceearnings
ratio. Blanks occurring in any column indicate that there were no transactions for
that particular entry.
In this investigation you are going to track the progress of two sets of shares.
1 Select two shares you feel might be a sound investment from those displayed in
a newspaper or on a Web site. Record the price per share of each.
2 Consider buying a bundle of 1000 of each of these shares. Calculate the total
cost of each of these shares, including brokerage. Brokerage is calculated
separately on each share transaction.
3 Record the 4 pm closing price of both the shares over a period of time (about
1 month).
4 Record the volume traded each day.
5 Record the dividend yield and price-earnings ratio for each stock.
(Continued)
i
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s
tiga
t
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i
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v
e
s
t i g a
t
i
o
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Code Stock
4pm
close Move
Vol
100s Buy Sell
Year
Div.
yield
PE
ratio High Low
7599
1229
2891
8198
8944
9894
7032
7728
4098
7858
SDI
Sedgman
SeekComm
SelectHvt
SelectVac
Senetas
Servcorp
SevenNwrk
SevenNwrk respf
Shearer
.23
.56
2.90
3.15
.002
.028
2.25
6.37
80
2.35
+.01
+.17
+.05
+.08
+.89
4043
6083
143
1000
61
4448
26
.23
.555
2.88
3.15
.002
.026
2.20
6.29
79.35
2.41
.27
.56
2.90
3.22
.003
.028
2.25
6.37
.80
2.80
.325
3.11
6.40
7
.019
.063
4.623
10.38
97.30
2.40
.15
.37
2.02
2.30
.002
.02
2.046
5.01
72.50
2.30
13.39f
4.97f
11.11f
7.78f
5.34f
8.91f
6.38f
9
20
11
6
56
5
25
9
6 At the end of your observation period, assume that you have to sell your shares.
Compile a report on the progress of your shares. Your report must include for
each share:
a the name of the share
b calculations showing the cost of purchasing 1000 shares (include brokerage)
c a graph plotting the share price over the period of time, including a
description of the trend shown by your graph
d calculations showing the money received from the sale of the shares
(include brokerage)
e the result of your trading (in terms of prot or loss)
f the dividend yield of the share
g the PE ratio of the share
h a prediction of a future value of the share. On your graph, draw the line of
best t to nd the trend in the movement of the share. Extrapolate this line
to predict the price of the share 6 months from now.
i any other observations or comments you consider relevant.
History
of mathematics
T H E D O W J O N E S I N D U S T R I A L A V E R A G E
When you see headlines like, Dow hammered,
the Dow is the Dow Jones Industrial Average
(DJIA or the Dow). A share market index created
in 1889 by two young Wall Street Journal
journalists, Charles Dow and Eddie Jones, it
tracked 10 stocks, of which General Electric is
the only company remaining in the index today.
The index was expanded to 20 stocks in 1916 and
30 in 1928. Before 1928, the index was
calculated by adding the prices of the 20 stocks
and dividing by the number of stocks. From April
1999, a more sophisticated divisor, 0.2252, has
been used. So, if you add up the 30 stock prices
and divide by 0.2252, you have the Dow.
The index tracks the performance of 30 large
companies: not the largest or best companies in
America but representing the diversity of the
economy. Stocks are the paid-up capital or fully-
paid shares of a particular company. They change
over time and include AT&T, Boeing, Coca-
Cola, Exxon Oil, General Motors, IBM,
McDonalds and retailers.
The DJIA lost 11%, or nearly 1165 points, in
the April to June (second) quarter of 2002. Stocks
for Coca-Cola and McDonalds did not fall during
this period; however, most other stocks fell
signicantly. The greatest losses (in percentages)
were for IBM, which was down 30.8%, AT&T,
which lost 31.8%, and Intel 39.9%.
Indexes can give you an idea of how particular
types of shares are performing. Other important
market indexes are the Nikkei 225 Index, the
Nasdaq Composite, Crude Oil and Standard &
Poors 500. Many companies and countries
develop their own indexes to keep an eye on the
performance of their shares.
Questions
1. Who created the Dow Jones Industrial
Average?
2. How many companies are now used
to measure this index?
3. How is the index now calculated?
4. Which types of stock contributed
most to the second quarter decline of
2002?
Research
1. Use either television news or a
newspaper to nd out what the
current DJIA is.
2. Search the Web to nd out what the
Nasdaq Composite tracks.
Flat rate interest
A at rate loan is one where interest is calculated based on the amount initially
borrowed.
Flat rate loans have the interest calculated using the simple interest formula:
I =
The total repayments on a at rate loan are calculated by adding the interest to the
amount borrowed.
The monthly or weekly repayments on a at rate loan are calculated by dividing the
total repayments by the number of weeks or months in the term of the loan.
Home loans
The interest of home loans is calculated at a reducible rate. This means that the
interest is calculated on the outstanding balance at the time and not on the initial
amount borrowed.
The interest on home loans is usually calculated and added monthly, while
repayments are calculated on a monthly basis.
To calculate the total cost of a home loan, we multiply the amount of each monthly
payment by the number of payments.
The cost of a loan
To compare a at rate loan with a reducing balance loan, the equivalent reducing
balance interest rate can be calculated using the formula:
.
When we are comparing two or more loans, the most accurate comparison is done
by calculating the total cost of repaying the loan.
A loan that is repaid over a shorter period of time will generally cost less even if the
interest rate may be slightly higher.
The exibility of loan repayments is an important consideration when we are
calculating the cost of a loan.
When we are calculating the cost of a loan, fees such as application fee and account
management fees must be considered along with the interest payable.
Loan repayments
The amount of each monthly repayment is best calculated using a table of monthly
repayments.
The monthly repayment on a $1000 loan at the given rate over the given term is
then multiplied by the number of thousands of the loan to nd the size of each
repayment.
Bonds, debentures and term deposits
Term investments with governments are called bonds.
Term investments with companies are called debentures.
Term investments with banks are called term deposits.
All three are investments for a xed period of time offering a simple interest rate.
summary
PRT
100
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E
1 r + ( )
n
1
n
---------------------------- =
Bank savings accounts minimum monthly and daily balances
Two methods used by banks for calculating interest on savings accounts are:
1. minimum monthly balances
2. daily balances.
Daily balances offer the best interest rate for investors.
Look at the balances on the rst and last day of the month when establishing the
minimum monthly balance or daily balances.
Express days as a fraction of a year; for example, 1 day = of a year.
A real estate agent acts on behalf of the seller.
The seller is responsible for the agents commission and GST charges on the
commission.
The buyer is responsible for transfer duty charges in the transfer of documents to
the buyers name.
When shares are being purchased, brokerage is added to the cost of the shares.
When shares are being sold, brokerage is subtracted from the sale price of the
shares.
Dividend yield = 100%
When you buy shares you purchase a share in the company. There is no guaranteed
return with shares, although there is a greater potential for prot than with
investments such as banking and property, but with that comes a higher risk.
Prot can be made from buying shares in two ways:
1. The value of the share could rise over time.
2. The company may pay a dividend to its shareholders. The dividend when
written as a percentage of the share price is called the dividend yield.
To try to predict the future movement in share prices, we can graph the past
movement in the share price and draw a line of best t on the graph. This line of
best t can be extrapolated to estimate the future price.
1
365
---------
dividend per share
-----------------------------------------------------
yearly profit per share
-----------------------------------------------------
1 Calculate the amount of at rate interest that will be paid on each of the following loans.
a $8000 at 7% p.a. for 2 years b $12 500 at 11.5% p.a. for 5 years
c $2400 at 17.8% p.a. for 3 years d $800 at 9.9% p.a. over 6 months
e $23 400 at 8.75% p.a. over 6 years
2 Calculate the total repayments made on a loan of $4000 at 23% p.a. at rate interest to be
3 Noel borrows $5600 at 7.6% p.a. to be repaid in monthly instalments over 3 years. Calculate
the amount of each monthly instalment.
4 Shane borrows $9500 to purchase a new car. He repays the loan over 4 years at a rate of
$246.60 per month. Calculate the at rate of interest charged on the loan.
5 Mr and Mrs Warne borrow $125 000 to purchase a home unit. The interest rate is 12% p.a.
and the monthly repayments are $1376.36. Calculate:
a the rst months interest on the loan
b the balance of the loan after the rst month.
6 Mr and Mrs Buckley borrow $130 000 to purchase a home unit. The interest rate is 8% p.a.
and over a 20-year term the monthly repayment is $1087.37.
a Copy and complete the table below.
1 130 000.00 866.67 129 779.30
2 129 779.30
3
4
5
6
7
8
9
10
11
12
CHAPTER
review
3A
3A
3A
3A
3B
3B
b Mr and Mrs Buckley decide to increase their monthly payment to $1500. Complete the
table below.
c How much less do Mr and Mrs Buckley owe at the end of one year by increasing their
monthly repayment?
7 Mr and Mrs Stone borrow $225 000 for their home. The interest rate is 9.6% p.a. and the
term of the loan is 25 years. The monthly repayment is $1989.48.
a Calculate the total repayments made on this loan.
b If Mr and Mrs Stone increase their monthly payments to $2000, the loan will be repaid
in 24 years and 1 month. Calculate the amount they will save in repayments with this
increase.
8 Use the formula to calculate the effective interest rate on each of the
following at rate loans (answer correct to 2 decimal places).
a $4000 at 7% p.a. over 2 years b $12 000 at 11% p.a. over 5 years
c $1320 at 23% p.a. over 2 years d $45 000 at 9.2% p.a. over 10 years
9 Yu-Ping borrows $13 500 for a holiday to Africa at 12.5% p.a. reducible interest over a
5-year term. The monthly repayments on the loan are $303.72.
b Calculate the amount of interest that Yu-Ping pays on the loan.
c Calculate the equivalent at rate of interest on the loan.
1 130 000.00 866.67 129 366.67
2 129 366.67
3
4
5
6
7
8
9
10
11
12
3B
3C
E
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n
1
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3C
10 Kristen and Adrian borrow $150 000 for their home. They have the choice of two loans.
Loan 1: At 8% p.a. interest over 25 years with xed monthly repayments of $1157.72.
Loan 2: At 8.25% p.a interest over 25 years with minimum monthly repayments of
$1182.68 and an $8 per month account management fee.
Kristen and Adrian believe they can afford to pay $1500 per month. If they do, Loan 2
will be repaid in 14 years and 2 months. Which loan should Kristen and Adrian choose if
they can afford to pay the extra each month?
11 Stephanie has a credit card with an outstanding balance of $423. Calculate the minimum
payment that must be made if she must pay 5% of the balance, or $10, whichever is greater.
12 Use the table of repayments on pages 1278 to calculate the monthly repayment on each of
the following loans.
a $25 000 at 9% p.a. over a 10-year term
b $45 000 at 14% p.a. over a 15-year term
c $164 750 at 15% p.a. over a 25-year term
d $425 000 at 12% p.a. over a 15-year term
13 Mr and Mrs Rowe take out a $233 000 home loan at 12% p.a. over a 25-year term.
a Use the table of repayments to calculate the amount of each monthly repayment.
b After 3 years the balance on the loan has been reduced to $227 657. The interest rate
then rises to 13% p.a. Calculate the new monthly repayment required to complete the
loan within the existing term.
14
A 6-year bond pays 8 % p.a. simple interest. If Rhonda buys a bond worth $500, the
interest she would earn would be:
A $233.75 B $250
C $255 D $755
E $2550
15
Simple interest was calculated on a
term deposit of 5 years at 3 % p.a.
When Leigh calculated her total return
on her investment principal of $350,
her return was:
A $61.25 B $65.63
C $131.25 D $400
E $415.63
16
State government bonds pay interest
of 7 % p.a. simple interest. Jess
invested $3500 in the bonds which
mature in 5 years. Jesss income
each quarter would be:
A $67.81 B $113.00
C $271.25 D $1356.25
E $3567.81
3C
3C
3D
3D
multiple choice
3E
1
2
---
multiple choice
3E 3
4
---
multiple choice
3E 3
4
---
17 Steve invested the $1800 he won at the races in an insurance company bond that pays
12 % p.a. provided he keeps the bond for 4 years. What is Steves total return from the
bond at the end of the 4 years?
18 Jocelyn buys $3500 worth of debentures in a company. She earns 8.5% p.a. simple interest
paid to her quarterly. If the agreed period of the debenture was 28 months, calculate the
amount of interest Jocelyn will earn.
19 The bank offers a term deposit account paying investors 10.5% p.a. on investments over
$10 000 for 2 years. Paul decides to invest $12 000 in this account. How much interest will
he earn at the end of the investment?
20 An investment bond is offered to the public at 10% per year. Louis buys a bond worth $4000
that will mature in 2 years. How much in total will Louis receive at the end of the 2 years?
21
In the bank statement shown below the minimum balance for the month is:
22
Deborahs bank statement shows the above
transactions for May. Calculate the interest
Deborah will earn in May if the bank pays
4 % p.a. simple interest monthly:
a on the minimum monthly balance
b on the daily balance.
23 At the beginning of July, Ross had $580
in his savings bank account. On 15 July
he withdrew $80. If the bank pays
8% p.a. interest paid monthly, calculate
the interest Ross earns in July:
a if calculated on the minimum
monthly balance
b if calculated on the daily
balance.
Date Transaction Deposit Withdrawal Balance
5/4
7/4
9/4
23/4
Transfer from CBR
Salary
Cheque 23456
ATM Rowville
$100
$1500
$1380
$125
$456.50
$1956.50
$576.50
$451.50
A $356.50 B $451.50 C $456.50 D $576.50 E $1956.50
1/5
3/5
7/5
19/5
27/5
$12
$6
$28.80
$10.00
$302.20
$273.40
3E 1
2
---
3E
3E
3E 1
2
---
1
2
---
multiple choice
3F
3F
3
4
---
3F
24 What commission would be payable on a house with a sale price of $405 000?
25 What GST would be payable on a house which sold for $342 650?
26 What proceeds would a seller receive from the sale of his $243 620 home unit through a real
estate agent?
27 The Brown familys new home has a price tag of $467 550. When transfer duty is included,
what would the Browns pay for their new home?
28 What would you pay for 1000 MMOB shares at $15.50 per share?
29 Comco shares are selling at $9.50 each. How much would you receive from a sale of 5000
of these shares?
30 A company that has 10.9 million shares makes a prot of $21 million. If this entire amount
is distributed among the shareholders, calculate the dividend that will be declared.
31 A company which has an after-tax prot of $2.3 billion distributes this among its
156 million shares. Calculate the dividend that this company will declare.
32 A company has a share price of $8.62. It declares a dividend of 45c per share. Calculate the
dividend yield on this share.
33 A company with a share price of 45c declares a dividend of 0.7c per share. Calculate the
dividend yield on this investment.
34 The dividend yield from a share valued at $19.48 is 4.2%. Calculate the dividend paid by
the company, correct to the nearest cent.
35 ANX Banking Corporation shares are selling at $10.50 per share. The company paid a
dividend of 26 cents per share. On a purchase of 1000 shares, calculate:
c the priceearnings ratio.
36 The table below shows the uctuations in a shares price over a period of 1 year.
a On a set of axes plot the share price for each month.
b Draw a line of best t on your graph and use your line to predict the share price after one
year.
3G
3G
3G
3G
3H
3H
3H
3H
3H
3H
3H
3H
3I
Digital doc:
Test Yourself
Chapter 3
eBookplus eBookplus
Digital docs
fractions ( page 109)
decimals ( page 109)
SkillSHEET 3.3: Practise nding a percentage of a
quantity ( page 109)
SkillSHEET 3.4: Practise writing one quantity as a
percentage of another ( page 109)
Digital docs
Spreadsheet 202: Investigate at interest ( page 111)
Spreadsheet 204: Investigate home loan costs
( page 113)
Digital docs
Spreadsheet 206: Investigate loan repayments
( page 130)
WorkSHEET 3.1: Calculate loan repayments,
interest and total amounts of investments
( page 130)
Digital doc
Spreadsheet 205: Investigate simple interest
( page 140)
Digital docs
SkillSHEET 3.5: Practise calculating the minimum
monthly balance ( page 146)
Spreadsheet 204: Investigate home loan calculations
( page 146)
Digital doc
WorkSHEET 3.2: Calculate consumer credit and
investment amounts ( page 164)
Digital doc
3A Flate rate interest
3B Home loans
3D Loan repayments
3E Bonds, debentures and term deposits
3F Bank savings accounts
3I Graphing share performance
Chapter review
www.jacplus.com.au
4
syllabus
reference
Strand
Statistics and probability
Core topic
Exploring and understanding
data
In this
chapter
4A Populations and samples
4B Bias
4C Contingency tables
4D Interpreting the shape of
histograms, stem-and-leaf
plots and boxplots
4E Interpreting data in
practical situations

Exploring
and
understanding
data
176


Populations and samples

Early population counts were musters, where community members were gathered
and counted. In 1828, the rst Australian

census

was conducted in New South
Wales. Each State conducted its own separate census until 1886, ve years after
the rst simultaneous census of the British Empire. In 1901, a common census
was conducted throughout Australia; however, the results were not collated to
form a total for Australia.
The Census and Statistics Act of December 1905 provided that:

The Census
shall be taken in the year 1911, and in every tenth year thereafter

.
During the Depression and World War II, no census was taken. The rst post-
war census took place in Australia in 1947.
The types of questions have changed over time to reect the changes in our
society. The time required to process the responses to the questions has been
reduced with the introduction of Optical Mark Reading machines (1991 census)
and Intelligent Character Recognition machines which can read handwritten
words in the 2001 census. Since 1961, a census has been held every ve years,
and the fteenth national Census of Housing and Population was held in 2006.
The 2001 census coincided with Australias Centenary of Federation. Partici-
pants were given the opportunity to place their census forms in a time capsule (to be held
by the National Archives) for 99 years. Descendants would then have a glimpse into the
lives of their forebears.
Many of the skills required for this chapter were developed in Year 11 (chapters 9 and 10
of

Maths Quest Maths A Year 11

2nd edition

). Revise the methods by completing the
following exercises.

1

Write each of the following as a decimal (correct to 3 decimal places).

a b c d
2

Convert each of the following to percentages.

a b

0.125

c d

0.04

3

Use your calculator to generate a set of 10 random integers in the range:

a

1 to 20 inclusive

b

50 to 100 inclusive.

4

Round the following numbers to integers.

a

3.6

b

4.02

c

2.91

d

6.5

e

0.9

5

Find the unknown in each of the following.

a

=

b

=

c

=

d

=

e

=

6

What types of features on a graph can cause it to be misleading?

7

For the following sets of scores

x

:
6, 9, 8, 7, 6, 5, 8, 11, 6, 7
Calculate:

a

x

b

x

c

median

d

mode

e

lower quartile

f

upper quartile

g

range

h

interquartile range.
3
8
---
1
12
------
65
80
------
124
210
---------
3
4
---
85
200
---------
1
4
---
2
a
---
3
7
---
b
21
------
2
9
---
5
c
---
5
d
---
2
7
---
e
9
---
7
6
---
C h a p t e r 4 E x p l o r i n g a n d u n d e r s t a n d i n g d a t a

177

Populations

A census represents information or data collected from every member of the popu-
lation. The term

population

does not necessarily represent a group of people; it is also
used to represent a group of objects with the same dened characteristics. So, the popu-
lation under study may be the wildlife in a national forest, the number of wattle trees in
a park, the soil in a farmers eld or the number of cars in a country town.
In some cases it may be possible to determine the exact extent of the population (the
number of wattle trees in the park or the number of cars in a country town); however, it
is often not possible to obtain an exact gure for the population (the extent of the wild-
life in a forest) because circumstances are constantly changing.
Sometimes it is not physically possible to consider the whole population (all the soil
in a farmers eld), as it would not be practical. It is often very costly and time con-
suming to consider the whole population in a study. For these reasons, we need to
obtain information about the population by selecting a

sample

that can then be studied.
A

census

is conducted when we obtain information from the whole

population

;
however, a

survey

is conducted on a

sample

of the population.

Australias population and
housing census

It is important that we understand the reason for recording statistical data accurately.
In our society, it is difcult to imagine a world without statistics. Try to imagine a
State of Origin football match where no one kept the score! The excitement of the
game would probably hold our attention for a while, but if no score was recorded,
winning or losing would not be an issue, and we would soon lose interest.
A census is an example of information collected from the whole

population

. It
is not always possible or feasible to conduct a

questionnaire

on the whole
population, so when this opportunity arises, it is vital to ensure that the questions
are carefully worded and that relevant information is sought.
The Australian Bureau of Statistics (ABS) is the government department
responsible for administering the Australian census, then collating and analysing
the responses. Their website (www.abs.gov.au) details information about their role
and it displays statistical data from many areas. Access this site to conduct your
research. Prepare a report providing responses to the following:

1

What is a national housing and population census?

2

Who takes part?

3

Is it compulsory to take part?

4

What types of questions are asked in the census? How have they changed over
the years?

5

Why should we have a census?

6

Who has access to the information we provide?

7

How is the census conducted?

8

Conclude your report with an expression of your opinion (agreement/
disagreement) of the answers gathered from your research. Provide constructive
suggestions to improve any aspect of the gathering, collating and analysing of
the census data.
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178


The particular circumstances determine the status of the
body being studied (whether it represents the population or
a sample of the population). Consider, for example, your
Mathematics A class. If we were to try to determine the
number of left-handed people in your school who studied
Mathematics A, and there was only one such class in your
school, then your class would be regarded as the whole popu-
lation. If, on the other hand, there were several Mathematics A
classes in your school, then your class would be considered
a sample of the population.

Samples

It is most important when selecting a sample from a population
that the sample represents the population as closely as possible.
For this to occur, the characteristics of the sample should occur
in the same proportions as they do in the population. There is
little point in selecting a sample where this is not the case, for
analysis of the sample would lead to misleading conclusions. We
often see this occurring when polls are conducted prior to an
election. Quite frequently they predict a particular outcome
while the election results in a different outcome.

Samples and sampling

When we select a sample from a population, if it has been chosen carefully, it should,
upon analysis of the data, yield the same (or very similar) results to those of the popu-
lation. A decision must be made regarding the size of the sample. In practice, the size
chosen is the smallest one that would be considered appropriate in those circumstances,
and the size that would yield a proportion of the elements close to that occurring in
the population.
In each of the following, state if the information was obtained by census or survey.
a A school uses the roll to count the number of students absent each day.
b The television ratings, in which 2000 families complete a questionnaire on what they
watch over a one-week period.
c A light globe manufacturer tests every hundredth light globe off the production line.
d A teacher records the examination marks of her class.
THINK WRITE
a Every student is counted at roll call each
morning.
a Census
b Not every family is asked to complete a
ratings questionnaire.
b Survey
c Not every light globe is tested. c Survey
d The marks of every student are recorded. d Census
1
WORKEDExample
C h a p t e r 4 E x p l o r i n g a n d u n d e r s t a n d i n g d a t a

179

Random sampling

A simple

random sample

is one for which each element of the population has an equal
chance of being chosen. A way in which this can be achieved is by numbering each
element of the population then randomly selecting items for the sample by using random
digit tables, the random function on a calculator

or

numbers drawn from a container.

Sample size

The aim of this investigation is to observe how the composition of a sample is
affected by the sample size.

1

Take a large packet of mixed coloured jellybeans (200 or more) as the
population. (Coloured disks could be substituted.)

2

Place the jellybeans in a container and mix well. Without looking, draw out a
sample of 10 in such a way that each jellybean has an equal chance of being
selected. This can then be considered a random sample. Count the number of
red jellybeans in the sample of 10.

3

Return the sample of 10 jellybeans to the container, mixing them well with the
others. Select a random sample of 20 jellybeans, using the same method as
before; record the number of red ones.

4

Continue in this manner, returning each sample to the container, mixing them
well, then selecting a sample containing 10 more than the previous selection.
Record the number of red jellybeans in each of the samples.

5

Generate a table of the format below:

6

Enter the data in the rst and third columns (sample size and proportion) into
a spreadsheet or graphics calculator. Graph the sample size against the
proportion of red jellybeans. (Alternatively, this could be graphed on graph
paper.)

7

Knowing that the proportion of red jellybeans in the whole population (the
nal row in the table above) represents the true answer, comment on the effect
of the sample size on the composition of the sample.

8

For your particular experiment, what would be the minimum sample size
which closely resembles the composition of the population?

9

If a sample is used to predict the composition or characteristics of a population,
describe what you feel are the desirable qualities of the sample in order to be a
reliable predictor of the composition or characteristics of the population.

10

Repeat the experiment. Comment on the similarities/differences in your
results.
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Sample size Number of red jellybeans
Proportion of red jellybeans
(as a decimal)
10
20
30
200
Whole population
180


Random sampling

The aim of this investigation is to compare different random sampling techniques
as methods of selecting a sample that is representative of the population. Consider
selecting a random sample of ten (10) students from your Mathematics A class.
(Your class is the population in this investigation. You may adjust the sample size if
you wish.)
1. Select a characteristic that is present in some of your class members such as
brown eyes, fair hair, height above 175 cm and so on.
2. Calculate and record the proportion of the population in your class with this
characteristic.
3. Have the students number off 1, 2, 3,

until all students have a number. This
number for our purposes may be regarded as the population number.

Task 1 Using random digit tables to select a sample

Tables of randomly generated digits are published. Below is a sample of a two-digit
random number table. These tables are generally much larger than the extract
shown. For our purposes, this size will be sufcient.
The following rules apply to the use of random digit tables.
Step 1 Begin at any position in the table (this position being chosen randomly).
Step 2 Move in any direction (vertically, horizontally) along a column or row.
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Two-digit random number table
16 79 43 59 41 16 39 29 11 12
13 54 24 09 46 24 93 53 28 82
25 56 61 15 97 82 65 77 94 82
85 41 99 74 09 05 98 89 72 10
71 51 35 29 52 52 89 02 92 96
02 81 92 89 17 08 04 63 43 03
84 67 19 23 43 11 05 17 08 07
36 36 72 21 86 99 28 41 24 22
23 04 78 05 33 01 66 06 04 57
80 22 99 14 89 15 65 19 06 25
C h a p t e r 4 E x p l o r i n g a n d u n d e r s t a n d i n g d a t a 181
Step 3 Continue moving in this direction, recording the numbers as you go.
Step 4 If the same number is repeated, do not record the number a second
time.
Step 5 Continue recording until the required total has been reached.
1 Use the two-digit random number table to select ten numbers within the range
of numbers in your class.
2 Determine the students in your class to whom these numbers refer.
3 Calculate and record the proportion of these students with the characteristic you
chose. How closely does it match the population proportion which you have
previously calculated?
Task 2 Using the random function on a calculator
1 Many scientic and graphing calculators can be set to generate random integers
in the range of your population number. (Your teacher will show you, if you are
unsure.)
2 Use your calculator to generate ten different random integers.
3 Relate these numbers to specic students in your class.
4 Calculate and record the proportion of students in your sample with your
chosen characteristic.
5 Compare this value with the population proportion.
Task 3 Using lot sampling
This type of sampling is used in drawing lotto winning numbers.
1 Write numbers (up to and including your population number) on small,
equally sized pieces of paper and place them in a container. Mix well.
2 Draw the numbers one at a time (without replacing them) until ten numbers
have been drawn.
3 Relate these numbers to the relevant students, as before.
4 Calculate and record the proportion of students with your chosen characteristic
in this sample.
5 Compare the value with the population proportion.
Conclusions
1 Draw up a table to display the results of all your experiments.
2 Compare the results obtained using the various techniques.
3 Did you nd one method better than any other?
4 How did the results using these three methods compare with the population
result?
Generating random integers
using a spreadsheet
This activity creates a spreadsheet to generate random integers (whole numbers)
within a given range. Consider the spreadsheet below.
1 Enter the headings in cells A1, A3, A4, A6, A7, A8 and A10.
2 Leave cells B7 and B8 blank. You will enter values in these cells once you run
the spreadsheet.
3 In cell B11, enter the formula =INT(RAND()*($B$8-$B$7+1))+$B$7. This
formula will generate a random integer in the range of the value entered in cell
B7 to the value entered in cell B8 inclusive. (You will not nd a correct value
appears until you enter values in cells B7 and B8.)
4 Copy this formula to the region B11 to K20. This will generate 100 random
integers in this region.
5 The function F9 will recalculate different sets of random integers. Add this
instruction to cell A22.
6 Enter values in B7 and B8. Notice the set of integers produced. Press the F9
key to generate a different set. Continue to generate new sets, making sure that
the numbers generated are within the range of those entered in cells B7 and B8.
You will nd that if you generate large integers you may have to widen
columns B to K.
7 Save your spreadsheet and obtain a printout.
8 You may wish to use this spreadsheet for generating a two-digit random
number table for your own use.
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ABS interviewer survey
The ABS conducts a census every ve years. To monitor changes that might
occur between these times, surveys are conducted on samples of the population.
The ABS selects a representative sample of the population and interviewers are
allocated particular households. It is important that no substitutes occur in the
sampling. The interviewer must persevere until the selected household supplies
the information requested. It is a legal requirement that selected households
cooperate.
The following questionnaire is reproduced from the ABS website
(www.abs.gov.au). It illustrates the format and types of questions asked by an
interviewer collecting data regarding employment from a sample.
Use the two-digit random number table on page 180 to select ten students from a
numbered class of 30 according to the following rules.
Rule 1 Start in the bottom left-hand corner.
Rule 2 Snake up and down the columns.
THINK WRITE
The selected numbers must be in the
range 1 to 30 inclusive.
Moving up the rst column on the left.
The numbers in the range are: 23, 2, 25,
13, 16. Continue by snaking down the
second column and so on, until
10 numbers have been selected (ignore
the second occurrence of a number).
Give 10 student numbers. Students selected have numbers 23, 2, 25, 13,
16, 4, 22, 19, 24 and 9.
1
2
3
2
WORKEDExample
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MINIMUM SET OF QUESTIONS WHEN INTERVIEWER USED Q1 to Q17
Q.1. I WOULD LIKE TO ASK ABOUT LAST WEEK, THAT IS, THE WEEK STARTING
MONDAY THE AND ENDING (LAST SUNDAY THE /YESTERDAY).
Q.2. LAST WEEK DID DO ANY WORK AT ALL IN A JOB, BUSINESS OR FARM?
Yes
No
Permanently unable to work
Permanently not intending to work
(if aged 65+ only)
K Go to Q.5
K
K No More Questions
K No More Questions
(Continued)
Q.3. LAST WEEK DID DO ANY WORK WITHOUT PAY IN A FAMILY
BUSINESS?
Yes
No
(if aged 65+ only)
K Go to Q.5
K
K No More Questions
Q.4. DID HAVE A JOB, BUSINESS OR FARM THAT WAS AWAY FROM
BECAUSE OF HOLIDAYS, SICKNESS OR ANY OTHER REASON?
Yes
No
(if aged 65+ only)
K
K Go to Q.13
K No More Questions
Q.5. DID HAVE MORE THAN ONE JOB OR BUSINESS LAST WEEK?
Yes
No
K
K Go to Q.7
Q.6. THE NEXT FEW QUESTIONS ARE ABOUT THE JOB OR BUSINESS IN
WHICH USUALLY WORKS THE MOST HOURS.
Q.7. DOES WORK FOR AN EMPLOYER, OR IN OWN BUSINESS?
Employer
Own business
Other/Uncertain
K
K Go to Q.10
K Go to Q.9
Q.8. IS PAID A WAGE OR SALARY, OR SOME OTHER FORM OF PAYMENT?
Wage/Salary
Other/Uncertain
K Go to Q.12
K
Q.9. WHAT ARE (WORKING/PAYMENT) ARRANGEMENTS?
Unpaid voluntary work
Contractor/Subcontractor
Own business/Partnership
Commission only
Commission with retainer
In a family business without pay
Payment in kind
Paid by the piece/item produced
Wage/salary earner
Other
K Go to Q.13
K
K
K
K Go to Q.12
K Go to Q.12
K Go to Q.12
K Go to Q.12
K Go to Q.12
K Go to Q.12
Q.10. DOES HAVE EMPLOYEES (IN THAT BUSINESS)?
Yes
No
K
K
Q.11. IS THAT BUSINESS INCORPORATED?
Yes
No
K
K
Q.12. HOW MANY HOURS DOES USUALLY WORK EACH WEEK IN (THAT JOB/
THAT BUSINESS/ALL JOBS)?
1 hour or more
Less than 1 hour/no hours
K No More Questions
K
Insert occupation questions if required
Insert industry questions if required
(Continued)
Q.13. AT ANY TIME DURING THE LAST 4 WEEKS HAS BEEN LOOKING FOR
FULL-TIME OR PART-TIME WORK?
Yes, full-time work
Yes, part-time work
No
K
K
K No More Questions
Q.14. AT ANY TIME IN THE LAST 4 WEEKS HAS
Written, phoned or applied in person
to an employer for work?
Answered an advertisement for a job?
Looked in newspapers?
Yes
No
Checked factory notice boards, or
used the touchscreens at Centrelink
ofces?
K
K
K
K
K
AT ANY TIME IN THE LAST 4 WEEKS HAS
Been registered with Centrelink as a
jobseeker?
Checked or registered with an employment
agency?
Done anything else to nd a job?
Advertised or tendered for work
Contacted friends/relatives
Other
Only looked in newspapers
None of these
K
K
K
K
K
K No More Questions
K No More Questions
K No More Questions
Q.15. IF HAD FOUND A JOB COULD HAVE STARTED WORK LAST WEEK?
Yes
No
Dont know
K
K
K
Remaining questions are only required if Duration of Unemployment is
needed for output or to derive the long-term unemployed.
Q.16. WHEN DID BEGIN LOOKING FOR WORK?
Enter Date
Less than 2 years ago
2 years or more ago
5 years or more ago
Did not look for work
......./......./.......
DD MM YY
......./......./.......
DD MM YY
......./......./.......
DD MM YY
K
Q.17. WHEN DID LAST WORK FOR TWO WEEKS OR MORE?
Enter Date
Less than 2 years ago
2 years or more ago
5 years or more ago
Has never worked (for two weeks or more)
......./......./.......
DD MM YY
......./......./.......
DD MM YY
......./......./.......
DD MM YY
K No More Questions
1 Copy and complete the following:
When we obtain data from the whole population, we conduct a _______________;
however, a survey obtains data from a _______________ of the population.
2 A school conducts an election for a new school captain. Every teacher and student in
the school votes. Is this an example of a census or a survey? Explain your answer.
Reading the questionnaire carefully you will note that, although the questions are
labelled 1 to 17, there are only fteen (15) questions requiring answers (two are
introductory statements to be read by the interviewer). Because of directions to
forward questions, no individual would be asked all fteen questions.
1 How many questions would be asked of those who have a job?
2 How many questions would unemployed individuals answer?
3 How many questions apply to those not in the labour force?
Choose a topic of interest to you and conduct a survey
1 Design an interview questionnaire of a similar format to the ABS survey, using
directions to forward questions.
2 Decide on a technique to select a representative sample of the students in your
class.
3 Administer your questionnaire to this sample.
4 Collate your results.
5 Draw conclusions from your results.
6 Prepare a report which details the:
a aim of your survey
b design of the survey
c sample selection technique
d results of the survey collated in table format
e conclusions.
1. Before beginning a statistical investigation it is important to identify the target
population.
2. The information can be obtained either by:
(a) Census the entire target population is questioned, or
(b) Survey a population sample is questioned such that those selected are
representative of the entire target population.
3. A random sample is one where chance is the only factor in deciding who is
surveyed. This can be done using a random number generator, or lot sampling.
remember
4A
WORKED
Example
1
3 A questionnaire is conducted by a council
to see what sporting facilities the commu-
nity needs. If 500 people who live in the
community are surveyed, is this an example
of a census or a survey?
4 For each of the following, state whether a
census or a survey has been used.
a Two hundred people in a shopping centre
are asked to nominate the supermarket
where they do most of their grocery
shopping.
b To nd the most popular new car on the
road, 500 new car buyers are asked what
make and model car they purchased.
c To nd the most popular new car on the
road, the make and model of every new
car registered is recorded.
d To nd the average mark in the mathematics half-yearly examination, every stu-
dents mark is recorded.
e To test the quality of tyres on a production line, every 100th tyre is road tested.
5 For each of the following, recommend whether you would use a census or a survey to nd:
a the most popular television program on Monday night at 7.30 pm
b the number of cars sold during a period of one year
c the number of cars that pass through the tollgates on the Brisbane Gateway Bridge
each day
d the percentage of defective computers produced by a company.
6 An opinion poll is conducted to try to predict the outcome of an election. Two thou-
sand people are telephoned and asked about their voting intention. Is this an example
of a census or a survey?
7 Use the two-digit random number table on page 180. Start at the bottom left-hand corner
then snake up and down the columns selecting 10 numbers in the range 50 to 99.
8 Use your calculator to generate 10 random integers in the range 50 to 99.
9 Use your calculator to generate a set of random two-digit integers in the range 01 to
99. Write these numbers in table format. Use your table (and some random selection
technique) to select 10 random integers in the range 50 to 99.
10 Compare your answers to questions 7, 8 and 9. Does it appear that three different sets
of random numbers resulted?
Bias
No doubt you have heard the comment, There are lies, damned lies and statistics. This
implies that we should be wary of statistical gures quoted. Indeed, we should always
make informed decisions of our own and not simply accept the mass of statistics that
bombards us through the media.
Bias can be introduced into statistics by:
1. questionnaire design
2. sampling bias
3. the interpretation of results.
WORKED
Example
2
eBookplus eBookplus
Digital doc:
Extension
Sampling methods
Bias in questionnaire design
Consider a survey designed to collect data on
opinions relating to culling kangaroo numbers
in Australia.
The questions may be designed to be
emotive in nature. Respondents in these situ-
ations feel obliged to show compassion.
Posing a question in the form, The
kangaroo is identied as a native Australian
animal, not found anywhere else in the
world. Would you be in favour of culling
kangaroos in Australia?, would almost cer-
tainly encourage a negative response.
Using a leading question (one which leads
the respondent to answer in a particular way)
can cause bias to creep into responses.
Rephrasing the question in the form, As you
know, kangaroos cause massive damage on
many farming properties. Youd agree that
their numbers need culling, wouldnt you?,
would encourage a positive response.
Using terminology that is unfamiliar to a
large proportion of those being surveyed
would certainly produce unreliable responses.
Do you think we need to cull herbivorous
marsupial mammals in Australia?, would
cause most respondents to answer according to
their understanding of the terms used. If the survey was conducted by an interviewer,
the term could be explained. In the case of a self-administered survey, there would be
no indication of whether the question was understood or not.
Sampling bias
As discussed previously, an ideal sample should reect the characteristics of the popu-
lation. Statistical calculations performed on the sample would then be a reliable indi-
cation of the populations features.
Selecting a sample using a non-random method, generally tends to introduce an
element of bias.
Particular responses can be selected from all those received. In collecting infor-
mation on a local issue, an interviewer on a street corner may record responses
from many passers-by. From all the data collected, a sample could be chosen to
support the issue, or alternatively another sample could be chosen to refute the
same issue.
A sample may be selected under abnormal conditions. Consider a survey to deter-
mine which lemonade was more popular Kirks or Schweppes. Collecting data one
week when one of the brands was on special at half price would certainly produce mis-
leading results.
Data are often collected by radio and television stations via telephone polls. A Yes
response is recorded on a given phone-in number, while the No respondents are asked
to ring a different phone-in number. This type of sampling does not produce a represen-
tative sample of the population. Only those who are highly motivated tend to ring and
there is no monitoring of the number of times a person might call, recording multiple
votes.
When data are collected from mailing surveys, bias results if the non-response rate is
high (even if the selected sample was a random one). The responses received often rep-
resent only those with strong views on the subject, while those with more moderate
views tend to lack representation in their correct proportion.
Statistical interpretation bias
Once the data have been collected, collated and subjected to statistical calculations,
bias may still occur in the interpretation of the results.
Misleading graphs can be drawn leading to a biased interpretation of the data.
Graphical representations of a set of data can give a visual impression of little change
or major change depending on the scales used on the axes (we learned about mis-
leading graphs in Year 11).
The use of terms such as majority, almost all and most are open to interpret-
ation. When we consider that 50.1% for and 49.9% against represents a majority
for an issue, the true gures have been hidden behind words with very broad mean-
ings. Although we would probably not learn the real facts, we should be wary of stat-
istical issues quoted in such terms.
Bias in statistics
The aim of this investigation is to study statistical data that you suspect to be
biased.
Conduct a search of newspapers, magazines or any printed material to collect
instances of quoted statistics that you believe to be biased. There are occasions
when television advertisements quote statistical gures as a result of questionable
sampling techniques. For each example, discuss:
1 the purpose of the survey
2 how the data might have been collected
3 the question(s) that may have been asked (try to pose the question(s) in a
variety of ways to inuence different outcomes)
4 ways in which bias might be introduced
5 variations in interpretation of the data.
Biased sampling
Discuss the problem that would be caused by each of the following biased samples.
1 A survey is to be conducted to decide the most popular sport in a local
community. A sample of 100 people was questioned at a local football match.
2 A music store situated in a shopping centre wants to know the type of music that
it should stock. A sample of 100 people was surveyed. The sample was taken
from people who passed by the store between 10 and 11 am on a Tuesday.
3 A newspaper conducting a Gallup poll on an election took a sample of
1000 people from the Gold Coast.
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Bias
1 Rewrite the following questions, removing any elements or words that might contribute
to bias in responses.
a The poor homeless people, through no fault of their own, experience great hardship
during the freezing winter months. Would you contribute to a fund to build a shelter
to house our homeless?
Discuss why the following selected samples could provide bias in the statistics collected.
a In order to determine the extent of unemployment in a community, a committee phoned two
households (randomly selected) from each page of the local telephone book during the day.
b A newspaper ran a feature article on the use of animals to test cosmetics. A form
beneath the article invited responses to the article.
THINK WRITE
a Consider phone book selection. a Phoning two randomly selected households per
page of the telephone directory is possibly a
representative sample.
Consider those with no phone
contact.
However, those without a home phone and
those with unlisted numbers could not form part
of the sample.
Consider the hours of contact. An unanswered call during the day would not
necessarily imply that the resident was at
work.
b Consider the newspaper
circulation.
b Selecting a sample from a circulated newspaper
excludes those who do not have access to the
paper.
Consider the urge to respond. In emotive issues such as these, only those
with strong views will bother to respond, so
the sample will represent extreme points of
view.
1
2
3
1
2
3
WORKEDExample
Bias can be introduced at each of the following stages:
1. questionnaire design
2. sampling bias
3. interpretation of results.
remember
4B
b Most people think that, since weve developed as a nation in our own right and
broken many ties with Great Britain, we should adopt our own national ag. Youd
agree with this, wouldnt you?
c Youd know that our Australian 50 cent coin is in the shape of a dodecagon,
wouldnt you?
d Many in the workforce toil long hours for low wages. By comparison, politicians
seem to get life pretty easy when you take into account that they only work for part
of the year and they receive all those perks and allowances. Youd agree, wouldnt
you?
2 Rewrite parts a to d in question 1 so that the expected response is reversed.
3 What forms of sampling bias can you identify in the following samples?
a Choosing a sample from students on a bus travelling to a sporting venue to answer
a questionnaire regarding sporting facilities at their school
b Sampling using phone-in responses to an issue viewed on a television program
c Promoting the results of a mail-response survey when fewer than half the selected
sample replied
d Comparing the popularity of particular chocolate brands when one brand has a two
for the price of one special offer
e Choosing a Year 8 class and a Year 12 class to gather data relating to the use of the
athletics oval after school
4 Why does this graph produce a biased visual impression?
5 Comment on the following statement:
University tests have demonstrated that Double-White toothpaste is consistently used
by the majority of teenagers and is more effective than most other toothpastes.
6 Surveys are conducted on samples to determine the characteristics of the population.
Discuss whether the samples selected would provide a reliable indication of the popu-
lations characteristics.
Sample Population
a Year 11 students Student drivers
b Year 12 students Students with part-time jobs
c Residents attending a Residents of a suburb
neighbourhood watch meeting
d Students in the school choir Music students in the school
e Cars in a shopping centre car park Models of Holden cars on the road
f Males at a football match Popular TV programs
g Users of the local library Popular teenage magazines
WORKED
Example
3
Value of A$ compared with US $1
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9 May 11 May 12 May
Date
Bias
It is important that a sample is chosen randomly to avoid bias.
Consider the following situation.
The government wants to improve sporting facilities in Brisbane. They decide to
survey 1000 people about what facilities they would like to see improved. To do
this, they choose the rst 1000 people through the gate at a football match at
Suncorp Stadium.
In this situation it is likely that the results will be biased towards improving
facilities for football. It is also unlikely that the survey will be representative of the
whole population in terms of equality between men and women, age of the
participants and ethnic backgrounds.
Questions can also create bias. Consider asking the question, Is football your
favourite sport? The question invites the response that football is the favourite
sport rather than allowing a free choice from a variety of sports by the respondent.
Consider each of the following surveys and discuss:
a any advantages, disadvantages and possible causes of bias
b a way in which a truly representative sample could be obtained.
1 Surveying food product choices by interviewing customers of a large supermarket
chain as they emerge from the store between 9.00 am and 2.00 pm on a
Wednesday
2 Researching the popularity of a government decision by stopping people at
random in a central city mall
3 Using a telephone survey of 500 people selected at random from the phone book
to nd if all Australian States should have Daylight Saving Time in summer
4 A bookseller using a public library database to survey for the most popular
novels over the last three months
5 An interview survey about violence in sport taken at a rugby league football
venue as spectators leave
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Contingency tables
When sample data are collected, it is often useful to break the data into categories. A
two-way frequency table or contingency table displays data that have been classied
into different types.
Consider, for example, data collected on the hair colour of 200 couples. It may be
represented in a table such as the one below.
These data could be represented as a 3-dimensional bar chart, as shown below.
Although this graph displays the data so that comparisons are readily visible, the
chart is difcult to read and gures can not be read accurately.
If we considered representing the data as a 2-dimensional segmented bar chart, this
could be done in two ways.
Splitting the data into categories based on the hair colour of the male and calculating
percentages in each category would yield the following gures and segmented bar graph:
Splitting the data into categories based on the hair colour of the female and calcu-
lating percentages in each category would yield the following gures and segmented
bar graph:
Female
Red Dark Fair Total
Male
Fair 11 25 9 45
Dark 19 51 28 98
Red 17 27 13 57
Total 47 103 50 200
Female
Red Dark Fair Total
Male
Fair 24% 56% 20% 100%
Dark 19% 52% 29% 100%
Red 30% 47% 23% 100%
Female
Red Dark Fair
Male
Fair 23% 24% 18%
Dark 41% 50% 56%
Red 36% 26% 26%
Total 100% 100% 100%
Fair
Fair
Dark
Dark
Red
Red
0
10
20
30
40
50
60
Hair colour of 200 couples
Female hair colour
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Red
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Red
Fair
Dark
Hair colour of female
Fair Dark Red
Hair colour of male
0
20%
40%
60%
80%
100%
Red
Fair
Dark
Hair colour of female
It is obvious that the interpretation of the data depends on the
reference basis. We may wish to interview those couples
where the male is fair haired and the female dark haired.
Note that this represents 25 couples. What if we talk about
percentages? Comparing the percentages in the two tables, it
can be seen that:
1. 56% of fair-haired males have female partners with dark
hair
2. 24% of dark-haired females have male partners with fair
hair.
These percentages have vastly different values, yet they both
describe the same set of 25 couples of fair-haired males and
dark-haired females. It is important, particularly when
dealing with contingency tables, to consider the reference
basis for percentages.
When information on a test is presented in a contingency table, conclusions can be
made about the accuracy of the test.
A new test was designed to assess the reading ability of
students entering high school.
The results were used to determine if the students reading
level was adequate to cope with high school. The students
results were then checked against existing records.
Of the 150 adequate readers who sat for the test, 147 of them
passed.
Of the 50 inadequate readers who sat for the test, 9 of them
passed.
Present this information in a contingency table.
THINK WRITE
Draw up the table showing the number of
students whose reading was adequate and
the number of students for whom the
results of the new test were conrmed.
Test results
Total Passed
Did not
pass
Adequate
readers
147 3 150
Inadequate
readers
9 41 50
Total 156 44
4
WORKEDExample
As a result of studying a contingency table, we should also be able to make judge-
ments about the information given in the tables. In the previous worked example
only one bag out of 25 with drugs went undetected. Although the dogs incorrectly
detected drugs in 11 bags that did not have drugs, they still have an overall accu-
racy of 94% as shown by the calculation [(24 + 164) 200] 100%.
Many contingency tables will require you to make your own value judgements about
the conclusions established. For example, the 94% overall accuracy recorded may be
considered very acceptable.
A batch of sniffer dogs is trained by customs to smell drugs in suitcases. Before they are
used at airports they must pass a test. The results of that test are shown in the contingency
table below.
a How many bags did the sniffer dogs examine?
b In how many bags did the dogs detect drugs?
c In what percentage of bags without drugs did the dogs incorrectly detect drugs?
d Based on the above results, what percentage of the time will the dogs not detect a bag
carrying drugs?
Test results
Total Detected Not detected
No of bags with drugs 24 1 25
No. of bags without drugs 11 164 175
Total 35 165
THINK WRITE
a Add both total columns; they should
give the same result.
a 200 bags were examined.
b The total of the detected column. b The dogs detected drugs in 35 bags.
c There were 175 bags without drugs but
dogs incorrectly detected them in
11 bags. Write this as a percentage.
c Percentage incorrectly detected
= 100%
= 6.3%
d Of 25 bags with drugs, 1 went
undetected. Write this as a percentage.
d Percentage not detected = 100%
Percentage not detected = 4%
11
175
---------
1
25
------
5
WORKEDExample
The contingency table at right shows the
composition of the employees of a small law
rm.
a Extend the table to show totals in all
categories and an overall total.
b Draw a table showing percentages with
respect to type of employment (full or part-time).
c Redraw the table showing percentages based on the gender of the employee.
d What percentage of females work full time?
e What percentage of full-time workers are female?
f Explain why, in the workforce in general, it would be easier to estimate an answer to
part d than it would to obtain an estimate for part e.
THINK WRITE
a Add the numbers in the cells
for all the rows and columns
and enter the totals. Check
that the overall total is
consistent for the rows and
columns.
b Percentages are based on
totals in columns. The totals
in the columns are on the
denominator when
calculating percentages.
c Percentages are based on
totals in rows. The totals in
the rows are on the
denominator when
calculating percentages.
d This is based on
female totals in table c.
d 100 = 100 = 27%
Write the answer. Percentage of females who work full time = 27%.
e This is based on full-time
totals in table b.
e 100 = 100 = 12%
Write the answer. Percentage of full-time workers who are female = 12%.
f An estimate is easier if the
required sample is smaller.
f It would be easier to obtain an estimate for the percentage
of females who work full time because the number of
females is fewer than the number of full-time workers.
This means that the sample size would be smaller.
Full-time Part-time
Female 4 11
Male 30 5
a
Full-time Part-time Total
Female 4 11 15
Male 30 5 35
Total 34 16 50
b
Full-time Part-time
Female 100 = 12% 100 = 69%
Male 100 = 88% 100 = 31%
Total 100% 100%
4
34
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11
16
------
30
34
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5
16
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c
Full-time Part-time Total
Female 100 = 27% 100 = 73% 100%
Male 100 = 86% 100 = 14% 100%
4
15
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11
15
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30
35
------
5
35
------
1
full time
female total
----------------------------
4
15
------
2
1
female
full-time total
---------------------------------
4
34
------
2
6
WORKEDExample
Climatic inuences in Queensland
For this activity we will investigate relationships between geographical features
that inuence our weather. We could pose questions such as:
What effect does latitude have on temperature?
What factor has the main inuence on day length?
What part does elevation play in inuencing temperature?
This investigation should be conducted using a spreadsheet. Data on
Queensland towns from the Bureau of Meteorologys website have been collated
and shown in two spreadsheet tables which follow. Graphs have been provided
for stimulus when investigating relationships between the variables in the
spreadsheet.
1 Use the Locality by longitude and Locality by latitude weblinks in your
eBookPLUS and download the spreadsheets. (The longitude le does not
contain the graphs displayed here.)
2 Experiment by graphing pairs of variables to determine whether a relationship
exists between the pair. You may wish to sort the spreadsheet using a different
classication.
3 Write a report on the geographical factors inuencing daily temperatures
and sunlight hours. Support your conclusions by providing graphical
evidence.
4 Sites on the World
Wide Web provide
weather conditions for
many places throughout
the world. Conduct a
search to collate data
from locations around
the globe. Investigate
the geographical
features which might
have an inuence on
their weather.
(Continued)
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We are constantly bombarded with statistics, some of which are a valid interpretation of
the data, and some of which are not. On occasions, the misuse of statistics may be uninten-
tional or through ignorance, but there are occasions when misleading gures are quoted
intentionally. If the raw data are available, it is wise to check the validity of any claims.
This ABS data from the 2006 census shows the age groups and education details for resi-
dents of Brisbane.
Australian Bureau of Statistics
2006 Census of Population and Housing
Brisbane (SD 305) 5904.8 sq. Kms
B01 SELECTED PERSON CHARACTERISTICS BY SEX (FIRST RELEASE PROCESSING)
Count of persons
Males Females Persons
Total persons 866 431 896 701 1 763 132
Age groups:
04 years 60 495 57 123 117 618
514 years 123 323 117 807 241 130
1519 years 63 978 61 948 125 926
2024 years 68 038 68 593 136 631
2534 years 126 312 130 313 256 625
3544 years 129 361 136 460 265 821
4554 years 115 978 121 807 237 785
7
WORKEDExample
5564 years 92 204 92 648 184 852
6574 years 49 229 52 354 101 583
7584 years 29 472 40 342 69 814
85 years and over 8 041 17 306 25 347
Age of persons attending an educational institution:
04 years 8 738 8 213 16 951
514 years 110 354 105 767 216 121
1519 years 40 549 42 704 83 253
2024 years 19 677 23 509 43 186
25 years and over 24 103 35 135 59 238
When discussing the probability of female attendance of 1519 year olds at an educational insti-
tution, it was said that 51% of the females in this age group attended an educational institute.
a Construct a contingency table displaying the attendance/non-attendance of 1519 year
old males and females at an educational institution.
b Use your contingency table to discuss the validity of the claim.
THINK WRITE
a Extract the attendance and total
gures for 1519 year old males
and females from the table.
a
Form a contingency table with
totals for rows and columns.
Subtract the attendance gure
from its relevant total to determine
the non-attendance gure.
For 1519 year olds
b Calculate the percentage of
females who attend an educational
institution; that is,
b P(females who attend an educational institution)
= 100
= 69%
69% of females attend an educational institution.
Calculate the percentage of those
in an educational institution who
are female; that is,
P(those in an educational institution who are
female)
= 100
= 51%
51% of those in an educational institution are
female.
Compare these probability
gures with the statement
above to determine if the
statement is correct.
The statement is not correct. It should have said
that 69% of 1519 year old females attend an
educational institution.
1
2
Male Female Total
Attend an
educational
institution
40 549 42 704 83 253
Do not attend
an educational
institution
23 429 19 244 42 673
Total 63 978 61 948 125 926
1
no. females
at education institute
total number of
females
-------------------------------------------------- 100
42 704
61 948
----------------
2
no. females
at education institute
total number in an
educational institution
----------------------------------------------------- 100
42 704
82 253
----------------
3
An error frequently occurs when statistics of the kind in the previous worked example
are quoted. The reference basis for the probability percentage should be carefully noted.
Contingency tables from census data
The table below displays data collected from the 2006 census. It shows the
numbers of males and females in various forms of employment in Australia for
persons aged 15 years and over.
Cat. No. 2068.0 - 2006 Census Tables
Australia (Australia)
INDUSTRY OF EMPLOYMENT - 2006 ANZSIC (DIVISION)(a) BY SEX
Count of employed persons aged 15 years and over
Based on the 2006 Australian and New Zealand Standard Industrial Classication (ANZSIC),
Second Edition
Based on place of usual residence
Using these data, we could form a contingency table to compare the proportion of
males and females in, for example, the retail trade. (Conrm the gures in the table
below.)
1 Use this table to:
a determine the percentage of male workers who are in the retail trade
b calculate the percentage of retail workers who are male
c explain why these two percentages are different
d plan a strategy to survey the workforce for an estimate of the number of
males in the retail trade.
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Accommodation and Food Services 247685 327419 575104
Administrative and Support Services 137241 149379 286620
Agriculture, Forestry and Fishing 195001 85911 280912
Arts and Recreation Services 66484 60912 127396
Construction 613949 95891 709840
Education and Training 212813 484993 697806
Electricity, Gas, Water and Waste Services 69856 19599 89455
Financial and Insurance Services 158750 189842 348592
Health Care and Social Assistance 204501 751644 956145
Information Media and Telecommunications 101921 74906 176827
Manufacturing 704850 247159 952009
Mining 90832 16054 106886
Other Services 191113 147100 338213
Professional, Scientic and Technical Services 328196 273821 602017
Public Administration and Safety 341906 266699 608605
Rental, Hiring and Real Estate Services 75848 78064 153912
Retail Trade 441975 591215 1033190
Transport, Postal and Warehousing 328750 99039 427789
Wholesale Trade 258850 137516 396366
Inadequately described 72667 40783 113450
Not stated 67947 55103 123050
Total 4911135 4193049 9104184
Male Female Total
Retail trade 441 975 591 215 1 033190
Non-retail trade 4 469160 3 601834 8 070 994
Total 4 911135 4 193 049 9 104 184
Contingency tables
1 A test is developed to test for infection with the u virus. To test the accuracy, the
following 500 people are tested.
Of the 100 people who are known to have the u who are tested, the test returns
98 positive results.
Of the 400 people who are known not to be infected with the virus who are tested,
12 false positives are returned.
Display this information in the contingency table below.
2 One thousand people take a lie detector test. Of 800 people known to be telling the
truth, the lie detector indicates that 23 are lying. Of 200 people known to be lying, the
lie detector indicates that 156 are lying.
Present this information in a contingency table.
2 Choose another category of the workforce from the census data. Construct a
contingency table, then answer questions similar to those on the facing page.
3 Reports from early recordings of census data showed that more than 50% of
Australians lived and worked on the land, providing food and clothing for our
population. Most recent reports indicate that only 3% of Australians now work
the land, providing for the remaining 97%. Use the data in the table to conrm
that this is indeed true.
4 It is important for future planning that these changes are recorded and made
known. Search the World Wide Web or reference books to obtain industry data
from the 2006 census. Examine the gures, noting changing trends in industry
employment. Report on your ndings.
Test results
Total Accurate Not accurate
With virus
Without virus
Total
1. Contingency tables can be used to display data that have been classied into
different types.
2. The table displays 2 variables which have been split into categories in a
horizontal and a vertical direction.
3. Calculations can be made with regard to a variety of reference bases.
remember
4C
WORKED
Example
4
3 The contingency table shown below displays the information gained from a medical
test screening for a virus. A positive test indicates that the patient has the virus.
a How many patients were screened for the virus?
b How many positive tests were recorded? (That is, in how many tests was the virus
detected?)
c What percentage of test results were accurate?
d Based on the medical results, if a positive test is recorded what is the percentage
chance that you actually have the virus?
4 The contingency table below indicates the results of a radar surveillance system. If the
system detects an intruder, an alarm is activated.
a Over how many nights was the system tested?
b On how many occasions was the alarm activated?
c If the alarm is activated, what is the percentage chance that there actually is an
intruder?
d If the alarm was not activated, what is the percentage chance that there was an
intruder?
e What was the percentage of accurate results over the test period?
f Comment on the overall performance of the radar detection system.
The information below is to be used in questions 5 to 7.
A test for a medical disease does not always produce the correct result. A positive test
indicates that the patient has the condition. The table indicates the results of a trial on a
number of patients who were known to either have the disease or known not to have the
disease.
Test results
With virus 45 3 48
Without virus 922 30 952
Total 967 33 1000
Test results
Total Alarm activated Not activated
Intruders 40 8 48
No intruders 4 148 152
Total 44 156 200
Test results
With disease 57 3 60
Without disease 486 54 540
Total 543 57 600
WORKED
Example
5
eBookplus eBookplus
Digital docs:
SkillSHEET 4.1
Converting a fraction
to a percentage
SkillSHEET 4.2
Writing one quantity
as a percentage
of another
5
The overall accuracy of the test is:
A 9.5% B 90% C 90.5% D 92.5% E 95%
6
Based on the table, what is the probability that a patient who has the disease has it
detected by the test?
A 9.5% B 90% C 90.5% D 92.5% E 95%
7
Which of the following statements is correct?
A The test has a greater accuracy with positive tests than with negative tests.
B The test has a greater accuracy with negative tests than with positive tests.
C The test is equally accurate with positive and negative test results.
D The test is equally inaccurate with positive and negative test results.
E There is insufcient information to compare positive and negative test results.
8 Airport scanning equipment is tested by scanning 200 pieces of luggage. Prohibited
items were placed in 50 bags and the scanning equipment detected 48 of them. The
equipment detected prohibited items in ve bags that did not have any forbidden items
in them.
a Use the above information to complete the contingency table below.
b Use the table to answer the following:
i What percentage of bags with prohibited items were detected?
ii What was the percentage of false positives among the bags that had no
prohibited items?
iii What percentage of prohibited items pass through the scanning equipment
undetected?
iv What is the overall percentage accuracy of the scanning equipment?
9 In some cases it is easier to count numbers in a particular category by considering a
different population. In each of the following pairs of proportions, which one would
be easier to determine?
a ii Proportion of males who are left-handed.
ii Proportion of left-handers who are males.
b ii Proportion of Mathematics A students in your school who are over 16.
ii Proportion of over 16 year olds in your school who study Mathematics A.
c ii Proportion of state school students who live in Queensland.
ii Proportion of Queensland school students who attend a state school.
Test results
Bags with prohibited items
Bags with no prohibited items
Total
multiple choice
multiple choice
multiple choice
10 Refer to the 2006 census data on industry of employment in Australia on page 200.
a Draw up a contingency table showing the males and females employed in edu-
cation and training compared with those employed in other industries.
b Extend your table to show totals in all categories as well as an overall total.
c Draw up a table showing percentages with respect to gender.
d Redraw your table showing percentages based on industry.
e What percentage of females are employed in education?
f What percentage of those employed in education are female?
g At some period in between census times, if it were necessary to obtain an estimate
of the number of females employed in education by surveying a sample, what
approach would you recommend?
Use the following data collected from the 2006 census for questions 11 and 12.
It details age groups and education details for residents of Townsville.
Townsville (C) (LGA 37 000) 1869.6 sq. Kms
Count of persons
Total persons 48 396 47 068 95 464
Age groups:
04 years 3 003 2 850 5 853
514 years 6 415 5 978 12 393
1519 years 3 749 3 819 7 568
2024 years 4 783 4 266 9 049
2534 years 7 306 6 900 14 206
3544 years 6 873 6 846 13 719
4554 years 6 630 6 295 12 925
5564 years 4 919 4 422 9 341
6574 years 2 723 2 797 5 520
7584 years 1 576 2 073 3 649
85 years and over 419 822 1 241
Age of persons attending an educational institution
04 years 357 344 701
514 years 5 662 5 293 10 955
1519 years 2 171 2 623 4 794
2024 years 1 054 1 487 2 541
25 years and over 1 351 2 219 3 570
11 a Construct a contingency table displaying the number of male and female 1519
year olds in Townsville compared with all other age groups there. Show all totals.
b Is it correct to claim that:
i 50.5% of 1519 year olds are female?
ii the percentage of males who are 1519 years of age is greater than the per-
centage of females who are 1519 years old?
Provide calculations to support your answers to each of these.
12 a Construct a contingency table displaying males and females of 1519 years
Attending an educational institution and Not attending an educational insti-
tution. Show all totals.
b From your contingency table calculate:
i the percentage of males in this age group in an educational institution
ii the percentage of those in an educational institution who are 1519 years old
and male.
c Would it be correct to say that only 55% of 1519 year old females attend an edu-
cational institution?
WORKED
Example
6
WORKED
Example
7
eBookplus eBookplus
Digital doc:
Worksheet 4.1

For questions 1 to 3, state whether a census or a survey has been used.
1 A school votes to elect a school captain.
2 Five hundred drivers complete a questionnaire on the state of a major highway.
3 All insurance customers complete a questionnaire when renewing their policies.
4 The rich should pay more in tax to allow the poorer families to have access to
better services, wouldnt you agree? Explain why this question is biased.
5 Rewrite the above question to eliminate bias.
6 Explain why a telephone phone-in response to an issue aired on TV would almost
certainly have a sampling bias.
This contingency table shows the test results of a radar surveillance system. If the
system detects an intruder, an alarm is activated. Refer to it when answering
questions 7 to 10.
7 Over how many nights was the system tested?
8 On how many occasions was the alarm activated?
9 If the alarm was activated, what is the percentage probability that there actually
was an intruder?
10 If the alarm was not activated, what is the percentage probability that there actually
was an intruder?
Interpreting the shape of histograms,
stem-and-leaf plots and boxplots
Symmetric distributions
The data shown in the histogram at right can be
described as symmetric.
There is a single peak and the data trail off
on both sides of this peak in roughly the same
fashion.
Similarly in the stem-and-leaf plot at right,
the distribution of the data could be described
as symmetric.
The single peak for these data occur at the
stem 3. On either side of the peak, the number of
observations reduces in approximately matching
fashion.
Alarm activated Not activated Total
Intruders 40 8 48
No intruders 4 148 152
Total 44 156
1
eBookplus eBookplus
Interactivity:
Boxplots and ve
gure summeries
int-0802
Stem
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1
2
3
4
5
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Leaf
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2 3
2 4 5 7 9
0 2 3 6 8 8
4 7 8 9 9
2 7 8
1 3
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Skewed distributions
Both of the histograms shown below are examples of skewed distributions.
The gure below left shows data which are negatively skewed. The data in this case
peak to the right and trail off to the left.
The gure below right shows positively skewed data. The data in this case peak to
the left and trail off to the right.
It is useful to compare the corresponding boxplots of distributions with shapes which
are symmetric, negatively skewed and positively skewed.
In the gure below a symmetric distribution is represented in the histogram and in
the boxplot.
The characteristics of this boxplot are that the whiskers are about the same length
and the median is located about halfway along the box.
Symmetric histogram Symmetric boxplot
Negatively skewed distribution
Positively skewed distribution
The ages of a group of people who were
taking out their rst home loan is
shown below.
Describe the shape of the distribution of
these data.
Stem
1
2
3
4
5
6
Leaf Key: 1|9 = 19 years
9 9
1 2 4 6 7 8 8 9
0 1 1 2 3 4 7
1 3 5 6
2 3
7
THINK WRITE
Check whether the distribution is symmetric
or skewed. The peak of the data occurs at the
stem 2. The data trail off as the stems increase
in value. This seems reasonable since most
people would take out a home loan early in
life to give themselves time to pay it off.
The data are positively skewed.
8
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 8
int-0426
The gure below shows a negatively skewed distribution. In such a distribution, the
data peak to the right on the histogram and trail off to the left.
In corresponding fashion on the boxplot, the bunching of the data to the right
means that the left-hand whisker is longer and the right-hand whisker is shorter; that
is, the lower 25% of data are sparse and spread out whereas the top 25% of data are
bunched up.
The median occurs further towards the right end of the box.
Negatively skewed histogram Negatively skewed boxplot
In the gure below we have a positively skewed distribution. In such a distribution,
the data peak to the left on the histogram and trail off to the right.
In corresponding fashion on the boxplot, the bunching of the data to the left means
that the left-hand whisker is shorter and the right-hand whisker is longer; that is, the
upper 25% of data are sparse and spread out whereas the lower 25% of data are
bunched up.
The median occurs further towards the left end of the box.
Positively skewed histogram Positively skewed boxplot
Explain whether or not the histogram and the boxplot shown below could represent the
same data.
THINK WRITE
The histogram shows a distribution
which is positively skewed.
The boxplot shows a distribution which
is approximately symmetric.
The histogram and the boxplot could not
represent the same data since the histogram
shows a distribution that is positively skewed
and the boxplot shows a distribution that is
approximately symmetric.
9
WORKEDExample
Outliers
When one observation lies well away from other observations in a set, we call it an
outlier. Sometimes an outlier occurs because data have been incorrectly obtained or
misread. For example, below we see a histogram showing the weights of a group of
5-year-old boys.
The outlier, 33, may have occurred because a weight was incorrectly recorded as 33
rather than 23 or perhaps there was a boy in this group who, for some medical reason,
weighed a lot more than his counterparts. When an outlier occurs, the reasons for its
occurrence should be checked.
To identify possible outliers, we can apply a simple rule.
An outlier is a score, x, which lies outside the interval
Q
1
1.5 IQR x Q
3
+ 1.5 IQR
An outlier is not included in the boxplot but simply plotted as a point beyond the end
of the whisker.
The results (out of 20) of oral tests in a Year-12 Indonesian class are:
15 12 17 8 13 18 14 16 17 13 11 12
Display these data using a boxplot and discuss the shape obtained.
THINK WRITE
Find the lowest and highest scores,
Q
1
, the median (Q
2
) and Q
3
by rst
ordering the data.
8 11 12 12 13 13 14 15 16 17 17 18
The median score is 13.5.
The lower half of the scores are
8 11 12 12 13 13.
So, Q
1
= 12
The upper half of the scores are
14 15 16 17 17 18.
So, Q
3
= 16.5
The lowest score is 8.
The highest score is 18.
Using these ve-gure summary
statistics, draw the boxplot.
Consider the spread of each quarter
of the data.
The scores are grouped around 12 and 13, as well
as around 17 and 18 with 25% of the data in each
section. The scores are more spread elsewhere.
1
2
7 8 9 10 11 12 13 14 15 16 17 18 19
3
10
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 10
int-0427
Weight (kg)
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15
20
25
1617 181920 212223242526 272829 30313233
The times (in seconds) achieved by the 12 fastest runners in the 100-m sprint at a school
athletics meeting are listed below.
11.2 12.3 11.5 11.0 11.6 11.4
11.9 11.2 12.7 11.3 11.2 11.3
a Draw a boxplot to represent the data, describe the shape of the distribution and
comment on the existence of any outliers.
b Use a graphics calculator to draw a boxplot for the data.
THINK WRITE/DISPLAY
a Determine the ve-gure
summary statistics by rst
ordering the data and obtain
the interquartile range.
a 11.0 11.2 11.2 11.2 11.3 11.3 11.4 11.5
11.6 11.9 12.3 12.7
lowest score = 11.0
highest score = 12.7
Q
2
= 11.35
Q
1
= 11.2
Q
3
= 11.75
IQR = 11.75 11.2 = 0.55
Identify any outliers by
applying the outlier rule.
Q
1
1.5 IQR = 11.2 1.5 0.55 = 10.375
The lowest score lies above 10.375, so there is no
outlier below.
Q
3
+ 1.5 IQR = 11.75 + 1.5 0.55 = 12.575
The score 12.7 lies above 12.575, so it is an outlier
and 12.3 becomes the end of the upper whisker.
Draw the boxplot with the
outlier.
Describe the shape of the
distribution. Data peak to the
left and trail off to the right
with one outlier.
The data are positively skewed with 12.7 seconds
being an outlier. This may be due to incorrect
timing or recording but more likely the 12th time
was simply slower than the rst eleven.
b Enter data. b
To enter the data, press:
2: STAT.
Enter the data into List 1.
Continued over page
1
2
3
11.0 12.0 13.0
Time (s)
4
1
MENU
11
WORKEDExample
THINK WRITE/DISPLAY
Draw the boxplot.
i To draw the boxplot press:
(GRPH)
(SET).
For StatGraph1, set the elds as
shown.
ii To draw one boxplot, press
(SEL). Set StatGraph1 to
DrawOn. Set StatGraphs 2 and 3
as DrawOff.
iii To see the boxplot, press
(DRAW). To nd the ve-
number summary, press
(TRCE). Note the
position of the outlier.
Enter data.
i To enter the data, press:
HOME c
ii To enter the list of scores in
column A, label the column A
with the title time.
Draw the boxplot.
i To highlight the rst column,
press the up arrow ` in column A
until it is highlighted. Press:
MENU b
3: Data 3
6: Quick Graph 6.
ii To draw one boxplot, press:
MENU b
1: Plot Type 1
2: Box Plot 2.
Use the NavPad to navigate over the
boxplot to show the ve-number
summary. Note the position of the
outlier.
2
F1
F6
F4
F6
SHIFT F1
1
2
Interpreting the shape of
histograms, stem-and-leaf
plots and boxplots
1 For each of the following stem-and-leaf plots, describe the shape of the distribution of
the data.
a b
1. When data are displayed in a histogram or a stem-and-leaf plot, we say that
their distribution is:
(a) symmetric if there is a single peak and the data trail off on either side of
this peak in roughly the same fashion
(b) negatively skewed if the data peak to the right and trail off to the left
(c) positively skewed if the data peak to the left and trail off to the right.
2. When data are displayed in a boxplot we say that the distribution of the data is:
(a) symmetric if the whiskers are about the same length and the median is
about halfway along the box
(b) negatively skewed if the left-hand whisker is longer than the right-hand
whisker and the median occurs closer to the right-hand end of the box
(c) positively skewed if the left-hand whisker is shorter than the right-hand
whisker and the median occurs closer to the left-hand end of the box.
3. An outlier is a score, x, which lies outside the interval
Q
1
1.5 IQR x Q
3
+ 1.5 IQR
Q
1
Q
2
Median
Q
3
25%
of data
25%
of data
25%
of data
25%
of data
Minimum
value
Maximum
value
Whisker Whisker
Box
A boxplot
remember
4D
WORKED
Example
8
Stem
0
1
2
3
4
5
6
7
Leaf Key: 1
|
2 = 12
1 3
2 4 7
3 4 4 7 8
2 5 7 9 9 9 9
1 3 6 7
0 4
4 7
1
Stem
1
2
3
4
5
6
Leaf Key: 2
|
6 = 2.6
3
6
3 8
2 6 8 8 9
4 7 7 7 8 9 9
0 2 2 4 5
c d
e f
2 For each of the following histograms, describe the shape of the distribution of the data
and comment on the existence of any outliers.
a b c
d e f
3
The distribution of the data shown in this
stem-and-leaf plot could be described as:
A negatively skewed
B negatively skewed and symmetric
C positively skewed
D positively skewed and symmetric
E symmetric.
Stem
0
0
0
0
0
1
1
1
1
1
Leaf Key: 1
|
8 = 18
1
2
4 4 5
6 6 6 7
8 8 8 8 9 9
0 0 0 1 1 1 1
2 2 2 3 3 3
4 4 5 5
6 7 7
8 9
Stem
2
3
4
5
6
7
8
9
10
Leaf Key: 10
|
4 = 104
3 5 5 6 7 8 9 9
0 2 2 3 4 6 6 7 8 8
2 2 4 5 6 6 6 7 9
0 3 3 5 6
2 4
5 9
2
7
Stem
1*
1*
2*
2*
3*
3*
4*
4*
Leaf Key: 2
|
4 = 24
5
1 4
5 7 8 8 9
1 2 2 3 3 3 4 4
5 5 5 6
3 4
Stem
3
3
4
4
4
4
4
Leaf Key: 4
|
3 = 0.43
8 9
0 0 1 1 1
2 3 3 3 3 3
4 5 5 5
6 7
8
Stem
60
61
62
63
64
65
66
67
Leaf Key: 62
|
3 = 623
2 5 8
1 3 3 6 7 8 9
0 1 2 4 6 7 8 8 9
2 2 4 5 7 8
3 6 7
4 5 8
3 5
4
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multiple choice
F
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4
The distribution of the data shown in the
histogram at right could be described as:
A negatively skewed
B negatively skewed and symmetric
C positively skewed
D positively skewed and symmetric
E symmetric.
5 The average number of product enquiries
per day received by a group of small
businesses who advertised in the Yellow
Pages telephone directory is given at
right. Describe the shape of the distri-
bution of these data.
6 The number of nights per month spent
interstate by a group of ight attendants
is shown on the stem plot at right.
Describe the shape of distribution of
these data and explain what this tells us
about the number of nights per month
spent interstate by this group of ight
attendants.
7 The mass (to the nearest kilogram) of
each dog at a dog obedience school is
shown on the stem plot at right.
a Describe the shape of the distribution
of these data.
b What does this information tell us
about this group of dogs?
8 The amount of pocket money (to the
nearest 50 cents) received each week by
students in a Year-6 class is illustrated in
the histogram at right.
of these data.
b What conclusions can you reach about
the amount of pocket money received
weekly by this group of students?
multiple choice
F
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Number of enquiries
0
1
2
3
4
5
6
7
8
0 1 2 3 4 5 6 7 8 9 101112131415
Stem
0
0
0
0
0
1
1
1
1
Leaf Key: 1|4 = 14 nights
0 0 1 1
2 2 3 3 3 3 3 3 3 3
4 4 5 5 5 5 5
6 6 6 6 7
8 8 8 9
0 0 1
4 4
5 5
7
Stem
0
0*
1
1*
2
2*
Leaf Key: 0|4 = 4 kg
4
5 7 9
1 2 4 4
5 6 6 7 8 9
1 2 2 3
6 7
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Pocket money ($)
0
1
2
3
4
5
6
7
8
5.5 6 6.5 7 7.5 8 8.5 9 9.51010.5
9 The number of hours of exercise com-
pleted each week by a group of
employees at a company is shown on the
stem plot at right.
of these data.
b What does this tell us about the
number of hours of exercise com-
pleted weekly by the employees in
this company?
10 Each of the histograms shown below is labelled with a letter and each of the boxplots is
labelled with a number. Match each histogram with a boxplot which could show the
same distribution.
11 For each of the following sets of data, construct a boxplot.
a 3 5 6 8 8 9 12 14 17 18
b 3 4 4 5 5 6 7 7 7 8 8 9 9 10 10 12
c 4.3 4.5 4.7 4.9 5.1 5.3 5.5 5.6
d 11 13 15 15 16 18 20 21 22 21 18 19 20 16 18 20
e 0.4 0.5 0.7 0.8 0.8 0.9 1.0 1.1 1.2 1.0 1.3
12
For the distribution shown in the boxplot below, it is true to say that:
A the median is 30
B the median is 45
C the interquartile range is 10
D the interquartile range is 30
E the interquartile range is 60.
13 The number of clients seen each day over a 15-day period by a tax consultant is:
3 5 2 7 5 6 4 3 4 5 6 6 4 3 4
Represent these data on a boxplot.
14 The maximum daily temperatures (in C) for the month of September in Brisbane are:
18 26 28 23 16 19 21 27 31 23 24 26 21 18 26 27
23 21 24 20 19 25 27 32 29 21 16 19 23 25 27
Represent these data on a boxplot.
Stem
0
0
0
0
0
Leaf Key: 0|1 = 1 hour
0 0 0 0 1 1
2 2 2 2 3 3 3
4 4 5
6 7
8
WORKED
Example
9
d a b c
I II III IV
WORKED
Example
10
eBookplus eBookplus
Digital doc:
Spreadsheet
004 Boxplots
multiple choice
10 20 30 40 50 60 70
15 The number of rides that 16 children had during their time at the annual show are listed
below.
8 5 9 4 9 0 8 7
9 2 8 7 9 6 7 8
a Draw a boxplot to represent the data, describe the shape of the distribution and com-
ment on the existence of any outliers.
b Use a graphics calculator to draw a boxplot for these data.
16 Twenty Year 7 students were asked how many music CDs they owned. The results are
presented below.
9 6 10 7 8 15 5 8 9 8
11 8 7 9 12 7 10 9 8 9
a Draw a boxplot to represent the data, describe the shape of the distribution and com-
ment on the existence of any outliers.
b Use a graphics calculator to draw a boxplot for these data.
Interpreting data in practical
situations
By exploring data collected from samples (provided the samples have been chosen
carefully) we are able to estimate characteristics of the population. We can determine
past trends and speculate on future trends. Through a series of investigations we will
explore the application of statistics and probability to life-related situations.
Using histograms to estimate probabilities
Discrete data (the type where the scores can take only set values) can be represented
as a frequency histogram.
Continuous data (the type where the scores may take any value, usually within a
certain range) can also be represented in the form of a frequency or probability histo-
gram. Let us construct a frequency histogram of continuous data from which we can
then estimate probabilities.
WORKED
Example
11
A battery company tested a random sample of a batch of their batteries to determine their
lifetime. The results are shown below.
a Represent the data as a frequency histogram.
b If you chose a battery from this batch, estimate the probability that the battery would last:
ii at least 25 hours
ii less than 40 hours.
c In an advertising campaign, the battery manufacturer claims that they will replace the
battery if it does not last at least 30 hours. Based on these results, what is the
probability they will have to replace a battery?
Continued over page
Lifetime (hours) 20<25 25<30 30<35 35<40 40<45 45<50
Frequency 6 25 70 61 30 8
12
WORKEDExample
It should be noted that, if we are not given a table of results (as we were in the previous
worked example), but simply a frequency histogram, we would have to estimate fre-
quencies from the histogram. In this case, the probability answers obtained would be
estimates rather than exact values.
THINK WRITE
a Construct a frequency histogram with lifetime
on the x-axis and frequency on the y-axis.
a
b Find the total number of scores. b Total number of scores
= 6 + 25 + 70 + 61 + 30 + 8
= 200
The total area under the curve is 1, so each
class interval represents a fraction of 1 in
terms of area (and probability).
ii Find the total of frequencies with a
score of at least 25 hours.
ii Total frequency at least 25 hours
= 25 + 70 + 61 + 30 + 8
= 194
Estimated probability
= 1
P(25 h) = 1
P(25 h) = 0.97
Write the answer. The probability that the battery
would last for at least 25 hours is
0.97.
ii Find the total frequencies with a score
of less than 40 hours.
ii Total frequency less than 40 hours
= 6 + 25 + 70 + 61
= 162
Apply the same rule as in part i. P(<40 h) = 1
P(<40 h) = 0.81
Write the answer. The probability that the battery
would last less than 40 hours is
0.81.
c Find the total frequency for those batteries
lasting less than 30 hours.
c Total frequency less than 30 hours
= 6 + 25
= 31
P(<30 h) = 1
= 0.155
Apply the probability rule. P(replacing battery) = 0.155
Write the answer. The probability that the manufacturer
will have to replace the battery is
0.155.
20 25
F
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30 35 40 45 50
0
10
20
30
40
50
60
70
Lifetime (hours)
Frequency histogram
1
2
1
2
total of frequencies at least 25 h
total number of scores
----------------------------------------------------------------------------
194
200
---------
3
1
2
162
200
---------
3
1
31
200
---------
2
3
Interpreting histograms
The aim of this investigation is to highlight the pitfalls in interpreting the shape
of histograms. The activity is more readily conducted using a graphics
calculator.
1 Consider the percentages received by a class of 36 students in their end-of-
semester test.
67, 90, 83, 85, 73, 80, 78, 79, 68, 71, 53, 65, 74, 64, 77, 56, 66, 63,
70, 49, 56, 71, 67, 58, 60, 72, 67, 57, 60, 90, 63, 88, 78, 46, 64, 81.
2 To enter the data as a list into a
graphics calculator, press:
2: STAT.
Enter the data into List 1.
3 i To graph the data as a histogram,
press:
(GRPH)
(SET).
Adjust the settings as shown, press
.
ii To set StatGraph1 DrawOn, press
(SEL).
Ensure StatGraphs 2 and 3 are set to
DrawOff.
iii To set the histogram to start at 40
with a width of 10, press
and then adjust settings as shown.
iv To draw the histogram, press
.
4 To view the histogram with different
widths, repeat ii to iv of part 3 to set
the histogram to start at 46, with a
width of 4.
Note that, while the previous histogram appeared to have one modal class, this one
appears multimodal.
(Continued)
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F1
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2 To enter the data as a list, press:
HOME c
Label column A as mark and enter
the data in the cells below.
3 Graph the data as a histogram starting
at 40, with a class interval of 10.
i To highlight column A place the
cursor over the title, mark and
press the up arrow `. Then press:
MENU b
3: Data 3
6: Quick Graph 6
MENU b
1: Plot Type 1
3: Histogram 3.
Note that this is a histogram of individual marks.
ii To adjust the class interval,
called the bin width, press:
MENU b
2: Plot Properties 2
2: Histogram Properties 2
2: Bin Settings 2.
Set the width to 10 and the
alignment to 40.
iii To redraw the histogram with the
adjusted class interval, press:
MENU b
5: Window/Zoom 5
2: Zoom Data 2.
4 To view the histogram with different
widths, repeat the previous steps to
change the bin width to 4 and the
alignment to 46.
Note that, while the previous histogram appeared to have one modal class, this one
appears multimodal.
Using scatterplots to consider relationships between
data sets
5 Use your calculator to investigate changing the class interval and the starting
value of the percentages. What do you observe?
6 All these histograms are graphical representations of the same data. While
they all indicate distributions with higher frequencies towards the middle,
some suggest bimodal or multimodal distributions. What do you conclude
from this investigation?
Are tall mothers likely to produce tall sons?
The table below details the heights of 12 mothers and their adult sons.
a Construct a scatterplot of the data.
b Draw the line of best t.
c Estimate the height of a son born to a 180-cm tall mother.
d Discuss the relationship between the heights of mothers and their sons as shown by
these data.
The solution to this problem will be shown using three methods.
1. Pen and paper 2. Graphics calculator 3. Spreadsheet
It should be noted that, when a line of best t is drawn by eye, variations in answers will
occur for those dependent on the position of the line.
Height of mother (cm) 185 152 168 166 173 172 159 154 168 148 162 171
Height of son (cm) 188 162 168 172 179 182 160 148 178 152 184 180
THINK WRITE/DRAW
Method 1. Using pen and paper
a Plot points on a graph with height of
mother on x-axis (the independent
variable) and height of son on y-axis
(the dependent variable). This results
in a scatterplot.
a
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Height of mother (cm)
13
WORKEDExample
THINK WRITE/DISPLAY
b Draw in the line of best t. Balance
an equal number of points either side
of the line and as close to the line as
possible.
b
c Draw a vertical line from the 180 cm
point on the x-axis to the line of best
t. From this point on the line, draw
a horizontal line to the y-axis. Read
this y-value.
c
From the graph
when x = 180
y = 190
So, a 180-cm tall mother could produce a son
approximately 190 cm tall.
d Look at the slope of the line and the
proximity of the points to the line.
d The slope of the line of best t is positive,
indicating that, as one variable increases, the
other also increases. The points lie fairly close
to the line, so this indicates a fairly strong
positive relationship between the two variables.
This seems to support the view that tall mothers
are likely to produce tall sons.
Method 2. Using a graphics calculator
These instructions apply to the Casio fx-9860 G AU and TI-Nspire CAS graphics calculators.
a To enter the data, press:
2: STAT.
Clear any data in the lists. Enter the
mothers height in List 1 and the
sons height in List 2.
a
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y = 190
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1
MENU
THINK WRITE/DISPLAY
(GRPH)
(SET).
Set StatGraph1 to be a scatterplot, XList
to List 1 and YList to List 2. Press to
return to the previous screen. Press (SEL).
Turn StatGraph1 on, making sure StatGraph2
and StatGraph3 are both turned off, then press
(DRAW).
To calculate the equation of the regression
line, press:
(CALC)
(X).
This shows the equation of the regression
line (or line of best t) to be
y = 1.064x 4.332.
b To draw the regression line, press:
(COPY)
(DRAW).
b
c To nd the sonss height when the mothers
height is 180 cm, press (TRCE).
Use the arrow keys to move the cursor along
the line to x = 180.
c
The sonss height is predicted to be about 187 cm.
a To enter the data into a spreadsheet, press:
HOME c
Enter the mothers height in column A and the
sons height in column B, labelling both
columns as shown.
a
To calculate the least-squares regression
line, highlight both columns and then
press:
MENU b
4: Statistics 4
1: Stat Calculations . . . 1
3: Linear Regression (mx + b) 3.
Continued over page
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THINK WRITE/DISPLAY
Ensure that X List: a[] and
Y List: b[]. Press Tab e to OK,
then press ENTER . This
shows the regression line (or line
of best t) to have the equation
y = 1.064x 4.332.
To draw a scatterplot, highlight
the rst two columns then press:
MENU b
3: Data 3
6: Quick Graph 6.
A scatterplot appears.
b To graph the regression line, press:
MENU b
4: Analyse 4
6: Regression 6
1: Show Linear (mx + b) 1.
The regression line will be displayed
on the scatterplot.
b
c To estimate the height of a son born
to a 180-cm tall mother, press:
HOME c
1: Calculator 1.
y = 1.064x 4.332 | x = 180.
Then press ENTER .
c
The sons height is predicted to be about 187 cm.
d Look at the angle of the straight line
and the proximity of the points to the
line.
d The line of best t from both calculators
predicts that a 180-cm tall mother could
produce an adult son approximately 187 cm
tall. The slope of the line of best t is
upwards, indicating that as one variable
increases the other also increases. Most of
the points lie close to the line, so it is
reasonable to assume that the relationship
between mother and son heights is quite
strong. This supports the proposal that tall
mothers are likely to produce tall sons.
3
4
THINK WRITE/DISPLAY
Method 3. Using a spreadsheet
a Open up a spreadsheet and enter
the data for the mothers and
sons heights in columns under
headings.
a
Use the chart wizard to graph the
data as a scatterplot.
Label the axes and provide a title
for the graph.
Adjust the range and scale on the
x- and y-axes to more appropriate
values if necessary (suggest 145
to 190 range with a scale of 5).
Print out a copy of the scatterplot.
b Draw in the line of best t. Balance
an equal number of points either side
of the line and as close to the line as
possible.
b From the scatterplot of the data above, the line
of best t is shown on the scatterplot.
c From the graph, read the
corresponding y-value
for x = 180 cm.
c When x = 180, y = 187.
So a 180-cm tall mother would produce an adult
son approximately 187 cm tall.
d Look at the slope of the line and the
proximity of the points to the line.
d The slope of the line of best t is positive,
indicating that, as one variable increases, the
other also increases. The points lie fairly close
to the line, so this indicates a fairly strong
positive relationship between the two variables.
This seems to support the view that tall mothers
are likely to produce tall sons.
1
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Comparison of data sets
When multiple data displays are used to display similar sets of data, comparisons and
conclusions can then be drawn about the data.
Contingency tables can also be a meaningful way of displaying data. A contingency
table allows for two variables to be compared.
A bank surveys the average morning and
afternoon waiting time for customers.
The gures were taken each Monday to
Friday in the morning and afternoon for
one month. The stem-and-leaf plot at right
shows the results.
a Find the median morning waiting time
and the median afternoon waiting time.
b Calculate the range for morning waiting times and the range for afternoon waiting times.
c What conclusions can be made from the display about the average waiting time at the
bank in the morning compared with the afternoon?
THINK WRITE
a There are 20 scores in each set and so
the median will be the average of the
10th and 11th scores.
a Morning: Median = (2.4 + 2.5) 2
= 2.45 minutes
Afternoon: Median = (1.6 + 1.6) 2
= 1.6 minutes
b For each data set, subtract the lowest
score from the highest score.
b Morning: Range = 4.5 0.7
= 3.8 minutes
Afternoon: Range = 5.7 0.7
= 5 minutes
c Conclude that waiting time in the
afternoon is generally less and more
consistent except for one outlier.
c The waiting time is generally shorter in the
afternoon. There is one outlier in the
afternoon scores which causes the range to
be larger. However, apart from this outlier
the afternoon scores are less spread.
Key: 12 = 1.2 minutes
Morning Afternoon
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WORKEDExample
A survey of 25 000 people is taken. The sex of each respondant is noted and whether they
are a smoker or non-smoker is also noted. The results are displayed in the two-way table
below.
a What percentage of the females surveyed were smokers?
b What percentage of the smokers surveyed were female?
Males Females Totals
Smokers 4125 4592 8717
Non-smokers 8436 7847 16 283
Totals 12 561 12 439 25 000
15
WORKEDExample
The most common method, however, for comparing data sets is to compare the sum-
mary statistics from the data sets. The measures of location such as mean and median
are used to compare the typical score in a data set. Measures of spread such as range,
interquartile range and standard deviation are used to make assessments about the con-
sistency of scores in the data set.
THINK WRITE
a Write 4592 as a percentage of 12 439. a Percentage of females who smoke
=
= 36.9%
b Write 4592 as a percentage of 8717. b Percentage of smokers who are female
=
= 52.7%
4592
12 439
---------------- 100%
4592
8717
------------ 100%
Below are the scores for two students in eight mathematics tests throughout the year.
Jane: 45, 62, 64, 55, 58, 51, 59, 62
Pierre: 84, 37, 45, 80, 74, 44, 46, 50
a Use the statistics function on the calculator to nd the mean and standard deviation for
each student.
b Which student had the better overall performance on the eight tests?
c Which student was more consistent over the eight tests?
THINK WRITE
a Enter the statistics into your calculator
to determine the mean and the standard
deviation.
a Jane: = 57, SD = 6
Pierre: = 57.5, SD = 17.4
b The student with the higher mean
performed better overall.
b Pierre performed slightly better overall, as
his mean mark was higher than Janes.
c The student with the lower standard
deviation was more consistent.
c Jane was the more consistent student, as her
standard deviation was much lower than
Pierres.
x
x
16
WORKEDExample
Interpreting data in practical
situations
1 In the distribution on the right:
a is the graph symmetrical?
b what is/are the modal class(es)?
c can the mean and median be seen from the
graph and, if so, what are their values?
d which score has the greatest probability of
occurring?
2 For the distribution shown on the right:
a are the data symmetrical?
b what is/are the modal class(es)?
c can the mean and median be seen from the
graph and, if so, what are their values?
d which classes have the same probability of
occurring?
e which class has the least probability of occurring?
3 The table on the right shows the number of
goals scored by a hockey team throughout a
season.
a Show this information in a frequency
histogram.
b Are the data symmetrical?
c What is/are the mode(s)?
d Can the mean and median be seen for this
distribution and, if so, what are their values?
e The probability that the team will score
5 goals is the same as their probability of
scoring what other number of goals?
1. Frequency histograms can be used to estimate probabilities in data sets.
2. Scatterplots display the relationship between two variables.
3. Scatterplots enable past and future trends to be considered.
4. When multiple displays are used for two or more sets of data, we can compare
and contrast the data sets and determine if any relationship exists between them.
5. A multiple stem-and-leaf plot allows for a quick comparison of medians,
ranges and interquartile ranges.
6. The summary statistics from two data sets can be compared quickly on a
box-and-whisker plot.
7. Contingency tables can be used to make a comparison of data where two
variables are involved.
8. The most commonly used comparisons are summary statistics to compare what
is a typical score and what the spread of the data is.
remember
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No. of goals Frequency
0 6
1 4
2 4
3 4
4 4
5 6
4 For the distribution shown on the right:
a what is/are the modal score(s)?
b which score has the greatest probability of
occurring?
c which score has the least probability of
occurring?
5 The table at right shows the number of
goals scored by a basketball team
throughout a season.
a Draw a frequency histogram of the
data.
b What is the probability that the team
will score more than 40 goals?
6
Which of the distributions below has the smallest standard deviation?
A B C
D E
7 A movie is shown at a cinema 30 times
during the week. The number of people
attending each session of the movie is
shown in the table at right.
a Present the data in a frequency histogram.
c What is/are the modal class(es)?
d What is the probability of more than
150 people attending a session?
e What is the probability of having up to
100 people at a session?
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WORKED
Example
12
No. of goals Frequency
1120 3
2130 6
3140 7
4150 23
5160 21
multiple choice
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No. of people Frequency
150 2
51100 3
101150 5
151200 10
201250 10
8 Year 12 at Wallarwella High School sit exams in chemistry and mathematics. The
results are shown in the table below.
a Is either distribution symmetrical? b State the mode of each distribution.
c In which subject is the standard deviation greater? Explain your answer.
d The students were told that the probability of achieving more than 80% in chem-
istry was the same as it was in mathematics. Is this true? Explain.
e Is the probability of obtaining more than a pass mark (50%) greater in chemistry
or mathematics?
f What is the propability of achieving over 90% in each subject?
Note that some answers in the following questions may vary depending on the position of
the line of best t. The use of a graphics calculator is recommended, if available.
9 A drug company wishes to test the effectiveness of a drug to increase red blood cell
counts in people who have a low count. The following data were collected.
Construct a scatterplot, then draw in the line of best t to nd the red blood cell count
at the beginning of the experiment (that is, on day 0).
10 A wildlife exhibition is held over 6 weekends and features still and live displays. The
number of live animals that are being exhibited varies each weekend. The number of
animals participating, together with the number of visitors to the exhibition each
weekend, is shown in the table which follows.
Construct a scatterplot, then draw in the line of best t to nd the predicted number of
visitors if there are no live animals.
11 A study of the dining-out habits of various income groups in a particular suburb
produces the results shown in the table below.
Mark Chemistry Maths
3140 2 3
4150 9 4
5160 7 6
6170 4 7
7180 7 9
8190 9 7
91100 2 4
Day of experiment 4 5 6 7 8 9
Red blood cell count 210 240 230 260 260 290
Number of animals 6 4 8 5 7 6
Number of visitors 311 220 413 280 379 334
Weekly income ($) 100 200 300 400 500 600 700 800 900 1 000
Number of restaurant
visits per year
5.8 2.6 1.4 1.2 6 4.8 11.6 4.4 12.2 9
WORKED
Example
13
eBookplus eBookplus
Digital docs:
SkillSHEET 4.3
Using an equation
to make predictions
Spreadsheet
057 Interpolation/
Extrapolation
Use the data to predict:
a the number of visits per year by a person on a weekly income of $680
b the number of visits per year by a person on a weekly income of $2000.
12 The following table represents the costs for transporting a consignment of shoes from
Brisbane factories. The cost is given in terms of distance from Brisbane. There are
two factories which can be used. The data are summarised below.
a Draw the line of best t for each factory.
b Which factory is likely to have the lowest cost to transport to a shop in Brisbane?
c Which factory is likely to have the lowest cost to transport to Mytown, 115 kilo-
metres from Brisbane?
d Which factory has more linear transport rates?
13 The stem-and-leaf plot drawn below shows the marks obtained by 20 students in both
English and Maths.
Key: 71 = 71
a Calculate the median mark for both English and Maths.
b Calculate the range of marks for both English and Maths.
c Comment on the distribution of marks in each of the subjects.
14 Tracey measures the heights (in meters) of twenty Year 10 boys and twenty Year 10
girls and produces the following ve-number summaries for each data set.
Boys: 1.47, 1.58, 1.64, 1.72, 1.81
Girls: 1.55, 1.59, 1.62, 1.66, 1.73
a Draw a box-and-whisker plot for both sets of data and display them on the same scale.
b What is the median of each distribution?
c What is the range of each distribution?
d What is the interquartile range for each distribution?
e Comment on the spread of the heights among the boys and the girls.
15 The box-and-whisker plots on the right
show the heights of a sample of Year 7
boys and a similar-sized sample of Year
12 boys.
a Calculate the range of heights among both the Year 7 and Year 12 boys.
b Calculate the interquartile range of the heights among both the Year 7 and Year 12
boys.
c Comment on the relationship between the two data sets, both in terms of measures
of location and measures of spread.
Distance from Brisbane (km) 10 20 30 40 50 60 70 80
Factory 1 cost ($) 70 70 90 100 110 120 150 180
Factory 2 cost ($) 70 75 80 100 100 115 125 135
English Maths
7 4 1 0
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Example
14
m Scale 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0
Year 7
Year 12
16 The contingency table below shows the results of random breath testing by Brisbane
police over one weekend. A driver is charged if they record a reading of over 0.05%
blood alcohol content (BAC).
a What percentage of the drivers tested were female?
b What percentage of the drivers tested had a PCA over 0.05?
c What percentage of female drivers had a PCA over 0.05?
d What percentage of male drivers had a PCA over 0.05?
e Based on the above results, can any conclusion be drawn concerning the prevalence
of drink driving among males and females? Explain your answer.
17 Ashley is the star player of a football team. To analyse the importance of Ashley to
the team, the coach prepares the contingency table below showing the results of
games over three years both when Ashley is playing and not playing.
a What percentage of games were won when Ashley played?
b What percentage of games were won when Ashley did not play?
c Do you think that Ashley has a signicant impact on the performance of the team?
Explain your answer.
18 Calvin recorded his marks for each test that he did in Physics and Chemistry
throughout the year.
Physics: 65, 74, 69, 66, 72, 64, 75, 60
Chemistry: 45, 85, 91, 42, 47, 72, 87, 85
a In which subject did Calvin achieve the better average mark?
b In which subject was Calvin more consistent? Explain your answer.
19 The police set up two radar speed checks in a country town. In both places the speed
limit is 60 km/h. The results of the rst 10 cars that have their speed checked are
given below.
Point A: 60, 62, 58, 55, 59, 56, 65, 70, 61, 64
Point B: 55, 58, 59, 50, 40, 90, 54, 62, 60, 60
a Calculate the mean and standard deviation of the readings taken at each point.
b At which point are drivers generally driving faster?
c At which point is the spread of the readings taken greater? Explain your answer.
20 Aaron and Sunil open the batting for the local cricket team. The number of runs they
have scored in each innings this season are listed below.
Aaron: 45, 43, 33, 56, 21, 38, 0, 29, 76, 40
Sunil: 5, 70, 12, 54, 68, 11, 8, 64, 32, 69
Males Females Totals
Over 0.05 PCA 26 7 33
Below 0.05 PCA 962 743 1705
Totals 988 750 1738
Won Lost Totals
Ashley playing 38 4 42
Ashley not playing 10 8 18
Totals 48 12 60
WORKED
Example
15
WORKED
Example
16
a Calculate the mean number of runs scored for
each player.
b What is the range of runs scored by each player?
c What is the interquartile range of runs scored by
each player?
d Which player would you consider to be the more
consistent player? Explain your answer.
21
The gures below show the ages of the mens and
womens champions at a tennis tournament.
Mens: 23, 24, 25, 26, 25, 25, 22, 23, 30, 24
Womens: 19, 27, 20, 26, 30, 18, 28, 25, 28, 22
Which of the following statements is correct?
A The mean age of the mens champions is greater than the mean
age of the womens champions.
B The range is greater among the mens champions than among the
womens champions.
C The interquartile range is greater among the mens champions
than among the womens champions.
D The standard deviation is greater among the mens champions
than among the womens champions.
E None of the above
22 A company producing matches advertise that there are 50 matches
in each box. Two machines are used to distribute the matches into
the boxes. The results from a sample taken from each machine are
shown in the stem-and-leaf plot below.
Key: 51 = 51 5*6 = 56
a Display the data from both machines on a box-and-whisker plot.
b Calculate the mean and standard deviation of the number of matches distributed
from both machines.
c Which machine is the more dependable? Explain your answer.
Machine A Machine B
4
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9
Year 2018 Commonwealth Games
The Gold Coast region has submitted a bid to host the 2018 Commonwealth
Games. Obviously a great deal of planning is required for such an event. It should
be held at a time which is not too hot or too cold. Since rain could interrupt
proceedings, this must be considered when choosing an appropriate time of year.
Humidity and wind speeds could also be factors to consider.
The table over the page (downloaded from the Bureau of Meteorology site)
shows climatic data collected for the Gold Coast from 1987 to 2008.
(Continued)
multiple choice
Digital doc:
WorkSHEET 4.2
eBookplus eBookplus
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Assume you work for an organisation which has a contract
to prepare the submission for the 2018 Commonwealth
Games on behalf of the Gold Coast. Your task is to:
1 decide on the best time of the year to hold this event
2 prepare a proposal on behalf of the Gold Coast council
to host the 2018 Commonwealth Games
3 support your submission with statistical analysis and
graphical displays
4 convince the Commonwealth Games organisers that the
Gold Coast is the best place to hold the event that year.
Monthly Climate Statistics for GOLD COAST SEAWAY
040764 GOLD COAST SEAWAY Longitude: 153.43 Degrees East
Commenced: 1987 Elevation: 3 m
Last Record: 2008 State: QLD
Latitude: 27.94 Degrees South
Statistic Element January February March April May June July August September October November December Annual
Mean max
temp (C)
28.5 28.4 27.6 25.6 23.3 21.2 21.1 21.6 23.6 25.1 26.4 27.6 25
Highest
temp (C)
38.5 40.5 36.3 33.3 29.4 27.1 26.8 28.5 33 36.8 35.5 39.4 40.5
Date of highest
temp
12-Jan-02 22-Feb-04 1-Mar-93 4-Apr-06 4-May-07 3-Jun-04 4-Jul-07 10-Aug-07 10-Sep-03 8-Oct-04 28-Nov-95 26-Dec-01 22-Feb-04
Lowest max
temp (C)
22.8 22.3 22.2 19.3 17.7 15.7 15.6 15 16.9 17.5 19.8 21.3 15
Date of lowest
max temp
4-Jan-96 19-Feb-94 13-Mar-03 13-Apr-94 31-May-00 16-Jun-98 3-Jul-95 12-Aug-05 23-Sep-93 23-Oct-96 6-Nov-96 2-Dec-94 12-Aug-05
Mean min
temp (C)
21.8 21.8 20.6 18.3 15.6 13.2 12 12.6 14.8 17 18.7 20.4 17.2
Lowest temp (C) 17.2 17.2 13.4 8.9 6.6 3.8 2.5 4.3 8.3 10 8.2 14.7 2.5
Date of lowest
temp
8-Jan-03 1-Feb-04 31-Mar-08 29-Apr-08 29-May-04 21-Jun-04 19-Jul-07 1-Aug-03 1-Sep-00 11-Oct-03 17-Nov-06 19-Dec-05 19-Jul-07
Highest min
temp (C)
26 27.3 26.2 23.7 21.8 19.1 21.8 18.3 20.7 22.2 24 24.6 27.3
Date of highest
min temp
21-Jan-00 22-Feb-04 6-Mar-97 2-Apr-00 6-May-00 6-Jun-02 11-Jul-00 31-Aug-04 18-Sep-96 27-Oct-05 28-Nov-95 19-Dec-97 22-Feb-04
Mean rainfall (mm) 107.8 169.2 89.1 89.5 110.7 124.1 41.7 68.7 43.6 91.5 124.8 124.9 1190.2
Highest rainfall
(mm)
193 471.2 210.2 226.2 339.6 455.8 172.2 204.2 163.6 255.4 379.4 197 1673.4
Year of highest
rainfall
1996 2003 2001 1998 1996 2005 1999 1999 1998 1997 2004 1995 1999
Lowest rainfall
(mm)
5.2 17.4 13 13.4 22.6 14.6 1 0 3.2 13.4 30.8 67.4 851.2
Year of lowest
rainfall
2003 2005 1998 2007 2004 1998 2007 1997 2000 1998 1994 2006 2002
Highest daily
rainfall (mm)
87 140 122 59 126 350.8 100.6 144 87 127 149.8 75.6 350.8
Date of highest
daily rainfall
10-Jan-96 4-Feb-03 10-Mar-01 17-Apr-98 15-May-03 30-Jun-05 1-Jul-05 29-Aug-99 12-Sep-98 8-Oct-97 7-Nov-04 8-Dec-04 30-Jun-05
Mean number of
days of rain
14.3 13.5 13.9 11.9 12.1 11.2 7.6 8.2 8.4 10.1 12.1 11.7 135
Mean 9am
temp (C)
25.8 25.7 24.7 22.6 19.7 17 16.5 17.6 20.1 22.1 23.6 24.9 21.7
Mean 9am relative
humidity (%)
71 72 71 68 69 68 65 62 62 64 65 67 67
Mean 9am wind
speed (km/h) for
years 1991 to 2008
18.4 17.3 18.6 16.9 14.3 13.7 13.1 15.4 16.7 17.4 18.3 17.8 16.5
Mean 3pm
temp (C)
26.5 26.7 25.7 24 22 20 19.7 20.1 21.6 22.6 23.9 25.2 23.2
Mean 3pm relative
humidity (%)
71 71 69 65 63 58 55 57 62 67 68 69 65
Mean 3pm wind
speed (km/h) for
years 1991 to 2008
25.2 23.7 25.1 22.7 19.5 18.8 19.1 22.5 24.2 24.8 24.4 24.8 22.9
Sampling text to predict population
characteristics
Research shows that the letter e is the most frequently used letter in the English
language. This activity aims to determine the frequency of its occurrence on a page
of English text using a sample selected from the page.
1 Choose a book with an extended section of continuous prose. Select 20 full
lines of text from a page (ignore incomplete lines).
2 Draw up the table below.
3 Count the number of es per line and complete the second column.
4 Using the gures in the second column, complete the cumulative total column.
5 Use a graphics calculator, spreadsheet or graph paper to draw a scatterplot of
the number of lines against the accumulated total.
6 Draw the line of best t on your scatterplot.
7 Count the number of lines of text on your page. Extrapolate your scatterplot to
estimate the number of es on the page you have chosen.
8 Compare your answer with those obtained from different texts by other
members of your class. Comment on the similarities and variations in your
answers. Factors that must be taken into account when making comparisons
between the number of es per page of printed material include page size, font
size, line length, line spacing and so on.
Aside: The novel, A void by George Perec (Harper Collins 1994) is written entirely
without the letter e.
Comparing population characteristics
The following tables display data collated from the 2006 ABS Census relating to
Queensland and Australia.
(Queensland (STE 3) 1740378.0 sq. Kms
Count of persons
Total persons 1 935 381 1 969 153 3 904 534
Age groups:
04 years 132 171 124 909 257 080
514 years 281 714 267 742 549 456
(Continued)
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Line number Number of es Cumulative total
1
2
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Age groups Males Females Persons
1519 years 138 175 132 124 270 299
2024 years 135 241 133 661 268 902
2534 years 258 405 265 192 523 597
3544 years 280 410 295 158 575 568
4554 years 265 750 273 434 539 184
5564 years 220 859 216 694 437 553
6574 years 129 382 130 044 259 426
7584 years 74 092 92 717 166 809
85 years and over 19 182 37 475 56 657
Counted on Census Night:
At home (a) 1 825 872 1 883 519 3 709 391
Elsewhere in Australia(a) 109 509 85 634 195 143
Indigenous persons:
Aboriginal 48 235 50 481 98 716
Torres Strait Islander 9 300 9 076 18 376
Both Aboriginal and Torres Strait Islander(b) 5 155 5 333 10 488
Total 62 690 64 890 127 580
Birthplace:
Australia 1 451 360 1 483 900 2 935 260
Elsewhere(c) 342 660 356 788 699 448
Language spoken at home:
English only 1 666 245 1 705 439 3 371 684
Other language(d) 144 061 159 035 303 096
Australian citizen 1 655 316 1 706 732 3 362 048
(a) Data are based on place of enumeration.
(b) Applicable to persons who are of both Aboriginal and Torres Strait Islander origin.
(c) Includes Australian External Territories, Inadequately described, At sea, and Not elsewhere classied.
(d) Includes Inadequately described and Non-verbal, so described.
Australia (0) 7759538.2 sq. Kms
Count of persons
Total persons 9 799 250 10 056 038 19 855 288
Age groups:
04 years 647 411 612 987 1 260 398
514 years 1 373 927 1 302 887 2 676 814
1519 years 695 798 661 110 1 356 908
2024 years 681 651 665 706 1 347 357
2534 years 1 321 061 1 355 330 2 676 391
3544 years 1 437 242 1 500 598 2 937 840
4554 years 1 360 081 1 402 443 2 762 524
5564 years 1 096 133 1 096 545 2 192 678
6574 years 668 447 704 987 1 373 434
7584 years 412 460 535 628 948 088
85 years and over 105 042 217 814 322 856
Counted on Census Night:
At home(a) 9 298 488 9 631 062 18 929 550
Elsewhere in Australia(a) 500 758 424 980 925 738
Indigenous persons:
Aboriginal 200 164 207 536 407 700
Torres Strait Islander 15 068 14 448 29 516
Both Aboriginal and Torres Strait Islander(b) 8 841 8 970 17 811
Total 224 073 230 954 455 027
Birthplace:
Australia 6 931 756 7 141 194 14 072 950
Elsewhere(c) 2 163 339 2 252 693 4 416 032
Language spoken at home:
English only 7 671 497 7 909 834 15 581 331
Other language(d) 1 522 742 1 623 453 3 146 195
Australian citizen 8 386 595 8 708 974 17 095 569
(a) Data are based on place of enumeration.
(b) Applicable to persons who are of both Aboriginal and Torres Strait Islander origin.
(c) Includes Australian External Territories, Inadequately described, At sea, and Not elsewhere classied.
(d) Includes Inadequately described and Non-verbal, so described.
1 Examine the data carefully.
2 Prepare a report outlining the similarities and differences between the
characteristics of Queenslanders and the overall Australian population. Support
your statements by reference to gures.
Modelling Olympic Games times
The running time for the mens 100-m
event in the Olympic Games broke the
10-second barrier for the rst time in
1968 when Jim Hines of the United
States clocked a time of 9.95 seconds.
Knowing that records are broken over
time, is it possible to predict a year when
a runner could break the 9.5-second
barrier?
We could model this situation by
looking at past times for the event. These
are shown in the table at right.
Note: The times have not decreased
consistently over the years. In fact, after
1968, the 10-second barrier was not
broken again until 1984 when Carl
Lewis of the United States won with a
time of 9.99 s. For this reason, along
with other factors which accompany
feats of human endurance, in modelling
situations such as this, any resulting
predictions can only be considered as
estimates.
1 Using a graphics calculator,
spreadsheet or graph paper, draw a
scatterplot of year (on the x-axis)
against time (on the y-axis). This
could be viewed as a time series as
the years are at equal intervals.
2 Draw the line of best t for your
scatterplot.
(Continued)
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Year
Time
(seconds)
1948 10.30
1952 10.40
1956 10.50
1960 10.20
1964 10.00
1968 9.95
1972 10.14
1976 10.06
1980 10.23
1984 9.99
1988 9.92
1992 9.96
1996 9.84
2000 9.87
2004 9.85
2008 9.69
3 Use your line of best t to nd the year in
which the 9.5-second barrier could be
broken in the 100-m sprint. This represents
a situation when we are extrapolating data
(that is, determining a value outside the
range of data plotted). Note that the
Olympic Games are only held every four
years and that your answer may not be one
of those years. It remains to be seen how
accurate your prediction is!
4 Use some resources available to you (World
Wide Web, reference books, almanacs and
so on) to collect data on other sporting
events (such as high jump heights, shot put
distances and swimming times). Model the
situation, enabling a prediction to be proposed.
EXTENSION: How fast could Usain Bolt have run? Use the Usain Bolt weblink in
your eBookPLUS to nd out.
Predicting test results
Over the year Sally had sat for nine mathematics tests, but had been sick at the
time of the tenth test. She had achieved above average marks for each of her nine
tests, so her teacher did not want to give her the class average for her last test. As
sometimes happens, the class as a whole found this last test more difcult than the
previous ones, so generally all marks were depressed. It would not then be fair to
give Sally the average of her previous tests for this last one. How could her teacher
give Sally an estimated mark based on her past performance compared with that of
her fellow students?
Below is a table displaying the class average percentage for each test and Sallys
percentage on the tests.
Because Sallys marks were consistently above the class average by 10% or more,
we could explore a relationship between the class average and Sallys marks.
1 Using a graphics calculator, or otherwise, construct a scatterplot of the rst nine
tests, plotting the class average percentage on the x-axis and Sallys percentage
on the y-axis.
2 Draw in the line of best t.
3 Use your line of best t and a value of 49 for the class average percentage to
determine an estimate for Sallys performance had she sat for the tenth test.
4 Do you think this is a fair mark to award to Sally? Justify your answer.
This method can be used in a variety of situations to estimate values for missing
results. The predictions become less accurate if there is a great deal of
inconsistency in past performance.
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Test 1 2 3 4 5 6 7 8 9 10
Class % 64 59 60 55 62 66 58 63 65 49
Sallys % 72 70 77 65 75 80 71 75 75
The door game
Imagine you are a contestant in a game on television. The conditions and rules are
as follows:
1. Three doors (door 1, door 2, and door 3) stand before you.
2. Behind one of these doors which face you and the audience lies the prize of
your dreams (a trip to Wimbledon or a Ferrari car). (The organisers know where
the prize lies.)
3. Behind each of the other two doors there is nothing.
4. You see the three closed doors before you and you have no hints.
5. With the benet (or distraction) of audience participation, you are asked to
select the door behind which you think the prize lies.
6. You tell the compere and audience which door you choose.
7. Before opening the door you have chosen, the compere tells you that rst, one
of the doors, different from the one you have chosen, will be opened; it will be
a door that does not have the prize behind it.
8. There are two doors now unopened and you are given an offer to change your
choice.
9. Of the two unopened doors, one is your original choice and the other not your
choice.
10. Using the theory of probability, would you have a better chance of winning if
you stayed with your original choice, or made the switch?
This was a game which was actually played on television for a lengthy
period many years ago. Regular viewers of the program formed their own
opinions regarding the better option by analysing the results of contestants
choices. The background to the game can be researched by a web search of the
name Monty Hall. You may be interested to conduct a search at this stage, or
leave your search until you have had time to formulate a logical reason for your
choice.
Part I
This activity provides practical experience for the door game. The simulation could
be undertaken as a class activity or in pairs.
1 Simulate three doors using books lying on a at surface instead of doors.
2 Underneath one of them place a small piece of paper. (The contestant is to be
unaware of the location of the paper.)
3 Ask the contestant to select one of the three books underneath which he or she
thinks this piece of paper lies.
4 Turn over one book other than one chosen by the contestant and underneath
which the object does not lie.
5 Ask the contestant whether he/she would like to choose a different book.
6 Turn over the book under which the paper lies.
(Continued)
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7 Repeat the simulation ten times. Copy and complete the table below, recording
your results after each turn shown in the table.
8 Combine your results with those of other members of your class so that your
combined set consists of a large number of simulations.
9 What are your conclusions from your experiment? Is it wise to stay with your
original choice or should you change your mind?
Part II
Let us consider the probabilities of the choices in the door game.
1. Since there are three doors, the probability of the prize
being behind any of these doors is .
This enables us to start a tree diagram as shown at right.
2. As you have three doors from which to
select, the probability that your choice
will be the correct selection is .
This realisation enables us to extend the
branches of the tree as at right.
Game Stay with choice Change mind Win/Lose
1
2
3
4
5
6
7
8
9
10
1
2
3
1
3
1
3
1
3
Prize door
1
3
---
1
1
2
3
2
3
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
3
Prize door
Your choice
1
2
3
1
2
3
1
3
1
3
1
3
1
3
---
3. Multiplying the probabilities along the
branches enables us to ll in the
probability for each selection (shown
at right).
4. The next stage is the crucial factor. Depending on which door is opened, will
you win if you stay with your choice, or are you more likely to win if you
change your mind? Follow the results completed for door 1. The combinations
of opened doors have been completed below for the remainder of the tree.
Complete the blank spaces.
Prize door Your choice Door opened Win if Win if I
I stay? change my mind?
2 or 3 Yes (P = ) No
3 No Yes (P = )
2 No Yes (P = )
3 ____ ____
1 or 3 ____ ____
1 ____ ____
2 ____ ____
1 ____ ____
1 or 2 ____ ____
5. Add the probabilities in the Win if I stay? column. This gives the overall
probability of your winning if you stay with your original choice.
6. Similarly, add the probabilities in the Win if I change mind? column. This
gure represents the overall probability of your winning if you change your
mind and choose the other unopened door.
Based on these probabilities, which choice should you make? How does this
agree with your experimental results from your practical simulation?
If you have not yet visited websites by searching for Monty Hall, it would now be
appropriate to do so. This game has created much discussion among great
mathematicians and non-mathematicians over many years.
1
1
2
3
1
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1
2
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2
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1
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1
9
1
9
1
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1
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1
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1
9
1
9
1
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1
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1
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Prize door
Your choice
1
1
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1
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1
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1
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1
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1
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1
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1
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For the set of scores 23, 45, 24, 19, 22, 16, 16, 27, 20, 21, use your calculator to nd:
1 the mean
2 the median
3 the mode
4 the range
5 the interquartile range
6 the standard deviation.
7 In the data set, is the distribution symmetrical?
8 Does the data set have an outlier (a score which is not typical of the data set)?
9 Which measure of central tendency is the best measure of location in this data set?
10 Explain why the interquartile range is a better measure of spread than the range.
2
A statistical investigation can be done by either census or sample.
A census is when an entire population takes part in the investigation.
A sample is when a small group takes part in the investigation and the results are
taken to be representative of the whole group.
A random sample occurs when chance is the only factor in deciding who
participates.
Bias
If the sample is poorly chosen the results of the investigation will be biased. This
means that the results will be skewed towards one section of the population.
Contingency tables
Display horizontal and vertical categories of two variables of a set of data
Calculations with regard to a variety of reference bases can be made.
Interpreting the shape of histograms, stem-and-leaf plots and boxplots
When data are displayed in a histogram or a stem-and-leaf plot, we say that the
distribution of those data is:
1. symmetric if there is a single peak and the data trail off on either side of this
peak in roughly the same fashion
2. negatively skewed if the data peak to the right and trail off to the left
3. positively skewed if the data peak to the left and trail off to the right.
Interpreting data in practical situations
Frequency histograms can be used to estimate probabilities in data sets.
Scatterplots display the relationship between two variables and allow predictions to
be made.
The summary statistics from two data sets can be compared from a stem-and-leaf
plot or box-and-whisker plot.
Contingency tables are used to compare data where there are two variables
involved.
Data are most commonly compared using the mean and standard deviation.
Measures of central tendency and spread
The mean, median and mode are measures of central tendency in a data set.
The mean is calculated by adding the scores then dividing by the number of scores.
The median is the middle score or average of two middle scores.
The mode is the most frequently occurring score.
The range, interquartile range and standard deviation are measures of spread.
The range is the difference between the highest and lowest scores.
The interquartile range is the difference between the upper and lower quartiles.
The standard deviation is found using the population or sample functions of a
calculator.
An outlier is a score that is much less or much greater than the other scores.
summary
1 For each of the following statistical investigations, state whether a census or a survey has
been used.
a The average price of petrol in Townsville was estimated by averaging the price at
40 petrol stations.
b The Australian Bureau of Statistics has every household in Australia complete an
information form once every ve years.
c The performance of a cricketer is measured by looking at his performance in every
match he has played.
d Public opinion on an issue is sought by a telephone poll of 2000 homes.
2
Which of the following is an example of a census?
A A newspaper conducts an opinion poll of 2000 people.
B A product survey of 1000 homes to determine what brand of washing powder is used
C Every 200th jar of Vegemite is tested to see if it is the correct mass.
D Information is collected to determine the number 1 hit single for the week.
E A federal election
3 Use your random number generator to select 10 numbers between 1 and 1000.
4 Bias can be introduced into statistics through:
a questionnaire design
b sample selection
c interpretation of statistical results.
Discuss how bias could be a result of techniques in the above three areas.
5 A medical test screens 200 people for a virus. A positive test result indicates that the patient
has the virus.
1. Of 50 people known to have the virus, the test produced 48 positive results.
2. Of the remainder who were known not to have the virus, the test produced one positive result.
Use the above information to complete the table below.
6 The results of a lie detector test are given below.
1. Of 80 people who are known to be telling the truth, the lie detector indicates that three
are lying.
2. Of 20 people known to be lying, the lie detector indicates that 17 are lying.
Display this information in a contingency table.
Test results
With virus
Without virus
Total
4A
CHAPTER
review
4A
multiple choice
4A
4B
4C
4C
7 Below are the results of a test screening for a disease. A positive test indicates that the
patient has the disease.
a How many people were tested for the disease?
b How many positive test results were recorded?
c What percentage of those people with the disease were correctly diagnosed by
the test?
d If a person without the disease is chosen at random, what percentage returned a positive
test?
8 A reading test for people with dyslexia is given and the results are shown in the contingency
table below.
a How many people were tested?
b What percentage of people tested positive for dyslexia?
c Based on the above results, if a person with dyslexia takes the test, what is the
percentage chance that they will be accurately diagnosed?
9
The contingency table below shows the results of a trial on new metal detectors for aircraft.
The metal detector scans a piece of hand luggage and lights up if metal is found.
Based on the above results, the chance of metal going undetected in a piece of hand luggage
is:
A 1% B 10% C 25% D 75% E 90%
Test results
Total 126 14
Test results
With dyslexia 39 1 40
Without dyslexia 85 5 90
Total 124 6
Test results
With metal 9 1 10
Without metal 87 3 90
Total 96 4
4C
4C
4C
multiple choice
10 A medical test for a disease does not always give the correct result. A positive test indicates
that the patient has the disease. The contingency table below shows the results of a new
screening test for the disease. It was tested on a group of people, some of whom were
known to be suffering from the disease; some of whom were not.
a How many people were tested for the disease?
b What percentage of the results were accurate?
c How many patients tested positive to the disease?
d What percentage of patients with the disease were correctly diagnosed by the new test?
e Based on the above results, what is the probability that a patient with the disease will
have the disease detected by this test?
11 The contingency table below compares the number of men and women who are right- and
left-handed.
a What percentage of males are left-handed?
b What percentage of females are left-handed?
c Based on the above data, is there any signicant difference between the percentage of
male and female left-handers?
12
The contingency table below shows the number of men and women who work in excess of
45 hours per week.
The percentage of men who work greater than 45 hours per week is closest to:
A 19% B 28% C 34% D 51% E 67%
Test results
Total 192 8
Men Women Totals
Right-handed 158 172 330
Left-handed 17 15 32
Totals 175 187 362
Men Women Totals
45 hours 132 128 260
>45 hours 69 34 103
Totals 201 162 363
4C
4C
4C
multiple choice
13 Sixty-seven primary and 47 secondary school
students were asked their attitude to the number of
school holidays which should be given. They were
asked whether there should be more, fewer or the
same number. Five primary students and
2 secondary students wanted fewer holidays,
29 primary and 9 secondary students thought that
they had enough holidays (that is, they chose the
same number) and the rest thought that they needed
to be given more holidays.
a Form a contingency table with reference to
primary and secondary school percentages.
b Use your table to compare the opinions of
primary and secondary school students.
14
The distribution of data shown in the stem-and-leaf
plot at right could be described as:
A negatively skewed
B negatively skewed with one outlier
C positively skewed
D positively skewed with one outlier
E symmetric.
15
The distribution of the data shown in this histogram
could be described as:
A negatively skewed
B negatively skewed with one outlier
C positively skewed
D positively skewed with one outlier
E symmetric.
16 a The money raised (to the nearest whole dollar) by each student in a Year-3 class on the
school walkathon is shown in the stem-and-leaf plot below.
Describe the shape of the distribution of these data.
b Describe how this distribution would need to change for it to become a symmetric one.
4C
multiple choice
4D
Stem
2
2*
3
3*
4
4*
5
5*
6
6*
Leaf Key: 3
|
1 = 31
3 4
5 6 8
0 1 2 3 4 4
5 5 7 9 9
0 1 3 3
6 8 8
0 1
6
9
multiple choice
4D
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4D
Stem
0
1
2
3
4
5
6
7
Leaf Key: 0
|
8 = $8
8 9
2 3 4 7
1 2 2 3 5 7 9
0 1 4 5 8
3 5 6 7
1 3 5
4 6
6
17
For the distribution shown in this boxplot it is true to say that:
A the range is 35
B the interquartile range is 10
C the median is 20
D the interquartile range is 25
E the median is equal to the interquartile range.
18
A distribution has a range of 80, an interquartile range of 30 and a median of 50. Which one
of the following boxplots could represent this distribution?
19
The boxplot at right represents the lengths of barracuda caught by shing boats during one
day. Which one of the following statements is not true about these data?
A The data contain an outlier.
B The shortest length is 0.4 m.
C The median is 60 cm.
D The interquartile range is 0.2 m.
E The distribution is positively skewed.
20 a For the set of data below, construct a boxplot to display the distribution.
2 5 4 6 3 7 9 8 5 3
1 4 6 8 7 5 2 9 5 6
b Describe the shape of the distribution.
21 Consider the data set represented by the frequency histogram on
the right.
a Are the data symmetrical?
b Can the mean and median of the data be seen?
c What is the mode of the data?
d Which score has the highest probability of occurring?
22 Consider this data set which measures the sales gures for a new salesperson.
a Draw the line of best t.
b Use your line to predict the sales gures for the tenth day.
Day (d) 1 2 3 4 5 6 7 8
Units sold (s) 1 2 4 9 20 44 84 124
4D
multiple choice
5 10 15 20 25 30 35
4D
multiple choice
A B
10 20 30 40 50 60 70 80 90
10 20 30 40 50 60 70 80 90
10 20 30 40 50 60 70 80 90 10 20 30 40 50 60 70 80 90 10 20 30 40 50 60 70 80 90
C D E
4D
multiple choice
0.4 0.6 0.8 1.0 1.2
Length of fish (m)
4D 4D
4E
1516
F
r
e
q
u
e
n
c
y
17181920
0
1
2
3
4
7
5
6
8
Score
4E
23 The table below shows the number of attempts that 20 members of a Year 12 class took to
obtain a drivers licence.
a Show these data in a frequency histogram.
c What is the probability of a student of the class taking more than three attempts to obtain
a drivers licence?
24 The stem-and-leaf plot below compares the crowds (correct to the nearest thousand) at a
football teams home and away matches.
a Calculate the median of both data sets.
b Calculate the range of both data sets.
c Calculate the interquartile range of both data sets.
d Display both sets of data on a box-and-whisker plot.
25 The gure on the right shows a
box-and-whisker plot showing
the average number of weekly
car sales made in last year and
this year.
a What was the median for each year?
b In which year was the range of sales greatest?
c In which year was the interquartile range of sales greatest?
d In which year did the car yard perform better? Explain your answer.
26 Hsiang compares her marks in 10 English exams and 10 Maths exams.
English: 76, 74, 80, 77, 73, 70, 75, 37, 72, 76
Maths: 80, 56, 92, 84, 65, 58, 55, 62, 70, 71
a Calculate Hsiangs mean mark in each subject.
b Calculate the range of marks in each subject.
c Calculate the standard deviation of marks in each subject.
d Based on the above data, in which subject would you say that Hsiang performs more
consistently?
Number of attempts Frequency
1 11
2 4
3 2
4 2
5 0
6 1
4E
4E
Key: 25 = 25 000
Home Away
8
7 3 2
6 6 3 2
5 5 2
0
1
2
3
6 7
0 1 1 6 8 9 9
4 5
4E
Scale 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Last year
This year
4E
Digital doc:
Test Yourself
Chapter 4
eBookplus eBookplus
Digital doc
Extension: Investigate more about populations and
samples (page 187)
Digital docs
SkillSHEET 4.1: Practise converting a fraction to a
percentage (page 202)
SkillSHEET 4.2: Practise writing one quantity as a
percentage of another (page 202)
WorkSHEET 4.1: Calculate measures of central
tendency, ve gure summary values, identify
outliers and interpret tables and graphs (page 204)
Digital doc
Spreadsheet 004: Investigate boxplots (page 214)
Tutorials
Int-0427: Watch how to construct a boxplot
(page 208)
Int-0426: Watch an example on how to
determine the interquartile range (page 209)
Interactivity
Boxplots and ve gure summaries int-0802:
Consolidate your understanding of constructing
boxplots (page 205)
Digital docs
SkillSHEET 4.3: Using an equation to make
predictions (page 228)
Spreadsheet 057: Investigate interpolation/
extrapolation (page 228)
Digital doc
4A Populations and samples
4C Contingency tables
4D Interpreting the shape of histograms,
stem-and-leaf plots and boxplots
WE 10
WE 11
4E Interpreting data in practical situations
Chapter review
www.jacplus.com.au
syllabus
reference
Elective topic
Maps and compasses
navigation
In this
chapter
5A Review of Earth geometry
5B Accurate position description
5C The nautical mile and the knot
5D Using the compass
5E Compass bearings and reverse
bearings
5F Fixing position
5G Transit x
5H Running x
5I Doubling the angle on the bow
5J Dead reckoning
5K The lighthouse and navigation
5L Lets go cruising
5MAir navigation

5

Navigation

5_61_60344_MQMA12Q_2E_05.fm Page 249 Friday, August 21, 2009 7:39 AM

250


Introduction

Unfortunately, scenarios like the above are too common. The ability to accurately
and rapidly describe the position of the sinking vessel could mean the difference
between life and death. So what will Captain Quinn do in the next 60 seconds to deter-
mine his position at sea?
In this chapter, we shall investigate circumstances similar to those described above,
and develop a working knowledge of techniques needed for coastal navigation. Some
principles related to air navigation are also included. Related questions that will be
answered include:
1. How can any position on the Earths surface be accurately described?
2. How can the Earth, a globe, be represented using only two dimensions?
3. Why do navigators use the
terms

nautical mile

and

knot

when most quantities
these days are described in
metric units?
4. What is a compass, why
does it work and how can it
be used in navigation?
5. How can charts assist us in
navigation, and how can
we x position on a chart?
6. How can lighthouses be
used to assist mariners?
7. How do GPS (Global
Positioning System) devices
work, and how can they be
of assistance to navigators?
Mayday, Mayday, Mayday!
This is Kestrel. Were sinking! Theres a man overboard! Kestrel is a yacht,
10 metres, and were a couple of nautical miles north of Great Keppel Island.
Weve hit a submerged object and the right side of the hulls damaged. Were
taking water . . . electricals damaged . . . GPS isnt working . . . engine wont start.
Rudder damage also. Impact threw one crew member overboard. Life jacket has
been thrown to him.
Repeat: man overboard. Male . . . Glen Smith . . . strong swimmer but hes
drifting further away. Seas here are very rough. Strong currents are taking us out
to sea. We require immediate assistance! Were taking a lot of water and the bilge
pumps cant keep up!
Two males still on board. Skipper, Sean Quinn speaking. Repeat: Mayday. We
need urgent assistance. Vessel may sink within the hour. Rapidly taking water.
Kestrel, this is Yeppoon Coast Guard. Weve received your distress call. Rescue
Shark Cat preparing to depart. Kestrel, can you accurately state your position?
Over.


C h a p t e r 5 N a v i g a t i o n

251

1

Lines of latitude and longitude are imaginary lines
which circle the Earth. Explain the difference
between the two.

2

What is the longitude, in degrees, of the
prime meridian passing through
Greenwich?

3

What is the latitude, in degrees, of
the equator?

4

When stating the position of a point
on the Earths surface, which
comes rst, latitude or longitude?

5

Give the formula for the
circumference of a circle.

6

What is the circumference of the
Earth if the radius is 6371 km?

7

State the relationship between tangent
ratio, opposite side and adjacent side in a
right-angled triangle.

8

Give the formula relating speed, distance and time.

9

What does Greenwich Mean Time (GMT) refer to?

10

What is an isosceles triangle?

Review of Earth geometry

This section, including exercise 5A, revises concepts covered in

Maths A Year 11 2nd
edition

, Chapter 6,

Earth geometry

.
Although our Earth is not quite spherical, it is useful, and acceptable, to assume that
it is a sphere for the purposes of mapping. The Earth rotates every 24 hours about an
axis joining the geographic North and South Poles. The line joining these poles and
passing through the Earths centre can be considered a diameter of the sphere.
Any plane that passes through the centre of the sphere intersects its surface to form
circles known as

great circles

. The

equator

is an example of a great circle. Great
circles that pass through the North and South Poles consist of two semicircles called

meridians

. As the radius of the Earth averages 6371 km, all great circles have this
distance for their radii. A meridian is also a

line of

longitude

. The line of longitude
passing through Greenwich is called the

prime meridian

. By international agreement,
the

longitude

of Greenwich is 0

. The location of all other meridians is measured by
the number of degrees they lie east or west of this line.
Any circle traced out on the surface of the Earth with a radius less than 6371 km is
known as a

small circle

.

Lines of latitude

are small circles on the surface of the Earth
whose planes are parallel to the equator.


252


Using latitude and longi-
tude, it is possible to x
accurately any point on the
surface of the Earth. The
cut-away globe in the
gure at right shows a
number of points on its sur-
face. The point A has the
coordinates (30

N, 60

W);
B is (40

S, 20

W); C is
(30

S, 50

E). Latitude is
always stated rst, fol-
lowed by longitude. (Think
alphabetically here LAT,
LONG.)
To nd the distance separating two points on the same line of longitude (that is, mer-
idian), the length of the arc of a circle of radius 6371 km is calculated. The distance
from the South Pole to the North Pole would be:
Distance

=

(fraction of circle)

(2

r

)

=

6371 km

=

20 015 km.
If 180

along a line of longitude is equivalent to a distance of 20 015 km, then
1

=

20 015 km

=

111.2 km.
N
S
E W
Latitude
Longitude
A
B
C
E
G
F
D
H
I
90
100
110
120
130
140
150
160
170 180
80
70
60
50
40
30 20 10 0
10
20
30
40
50
60
70
80
10
20
30
40
50
20
40
60
60
P P
Use the cut-away globe in the gure above, to give the coordinates of D.
THINK WRITE
Recall LAT LONG, so latitude is required rst.
D is 40 above the equator; that is, 40N.
D is 60 west of the prime meridian;
that is, 60W.
The coordinates of D are (40N, 60W).
1
2
3
1
WORKEDExample
180
360
---------
1
180
---------
Using the gure above, nd the distance from A (15S, 120E) to B (45S, 120E).
THINK WRITE
A and B are on the same line of longitude;
that is, 120E.
Calculate the angular distance AB. Angular distance = 45 15
= 30
Convert the angular distance to kilometres
using 1 = 111.2 km.
Distance = 30 111.2 km
= 3336 km
1
2
3
2
WORKEDExample


C h a p t e r 5 N a v i g a t i o n

253

Review of Earth geometry

1

Use the cut-away globe provided,
to give the coordinates of:

a

A

b

B

c

C

d

D

e

G

f

I.

2

Name two meridians in the
gure in question

1

(for
example, NGS is a meridian).

3

If P represents the centre of
the Earth, state the value of:

a

DPF

b

DPE

c

HPC

d

BPG.

4

Using the map over the page,
identify the major cities closest
to the following locations.

a

(30

S, 30

E)

b

(30

N, 120

E)

c

(45

N, 75

W)

d

(32

S, 115

E)
Using the gure on the previous page, nd the distance from A (50N, 80E) to B (82S,
80E) to the nearest kilometre.
THINK WRITE
Points A and B are on opposite sides of
the equator, and on the same meridian.
Calculate the angular distance AB
(latitude angles must be added).
Angular distance = 50 + 82
= 132
Convert the angular distance to
kilometres using 1 = 111.2 km.
Distance = 132 111.2 km
= 14 678 km
1
2
3
3
WORKEDExample
1. Any plane that passes through the centre of a sphere intersects the surface of
the sphere to form circles known as great circles, for example the equator.
2. Great circles which pass through the North and South Poles consist of two
semicircles called meridians or lines of longitude.
3. The line passing through Greenwich is the prime meridian (0 longitude).
4. Lines of latitude are circles on the surface of the Earth parallel to the equator;
they are assigned a number depending on the number of degrees they are north
or south of the equator.
5. To x a position, state latitude then longitude.
6. Along a meridian line, 1 = 111.2 km.
remember
5A
N
S
E W
Latitude
Longitude
A
B
C
E
G
F
D
H
I
90
100
110
120
130
140
150
160
170 180
80
70
60
50
40
30 20 10 0
10
20
30
40
50
60
70
80
10
20
30
40
50
20
40
60
60
P P
WORKED
Example
1
eBookplus eBookplus
Digital doc:
SkillSHEET 5.1
Angle measures in
degrees and minutes
5 Give the approximate coordinates of:
a Los Angeles b Cape Town c Singapore d Beijing.
6 Find the shortest distance (to the nearest km) from:
a A (20S, 110E) to B (60S, 110E) b D (10S, 140E) to E (80S, 140E)
c T (15N, 80W) to R (75N, 80W) d E (20N, 115W) to F (86N, 115W).
7 Find the distance (to the nearest km) from:
a X (20S, 86W) to Y (50N, 86W) b G (40N, 135E) to H (18S, 135E).
8 How far is Melbourne (38S, 145E) from the equator?
Representing the Earth in two
dimensions
Maps play an extremely important role in
our modern world. They are essential in
order to travel safely and efciently by
sea, land and air. They are necessary for
the subdivision of land, the construction
of roads, dams, bridges and railways, and
helping us out when we are lost.
A map is a 2-dimensional representation
of a 3-dimensional portion of the Earths
curved surface. There are difculties in
attempting to make a curved surface at.
Trying to atten half a tennis ball gives us
RUSSIA
AUSTRALIA
Sydney
Brisbane
Darwin
Los Angeles
Vancouver Montreal
New York
Rio de Janeiro
Perth
Melbourne
Hobart
Auckland
Port Moresby
NEW
ZEALAND
JAPAN
NORTH KOREA
SOUTH KOREA
CHINA
INDIA
SINGAPORE
IRAQ
SRI LANKA
TAIWAN
PHILIPPINES
INDONESIA
PAPUA
NEW GUINEA
Moscow
Black Sea
Persian Gulf
Caspian Sea
FINLAND
SWEDEN
60W
60N
30N
0
30S
60N
30N
0
30S
30W 150W 120W 90W 60W 30W 0 0 30E 60E 90E 120E 150E 180
30W 0 150W 120W 90W 60W 30W 30E 60E 90E 120E 150E 180
NORWAY
ICELAND
GREENLAND
IRELAND
UK
ITALY
FRANCE
SPAIN
ALGERIA
MALI
NIGER
ANGOLA
KENYA
NAMIBIA
SOUTH AFRICA
MADAGASCAR
Johannesburg
LIBYA
EGYPT
PORTUGAL
NETHERLANDS
UNITED STATES
OF AMERICA
CANADA
Alaska
(USA)
I
n
t
e
r
n
a
t
i
o
n
a
l

D
a
t
e

L
i
n
e
MEXICO
Hawaii (USA)
COLOMBIA
JAMAICA
ECUADOR
PERU
CHILE
BOLIVIA
PARAGUAY
URUGUAY
BRAZIL
ARGENTINA
Buenos Aires
Santiago
Lima
Colombo
Oslo
Suva
FIJI
Cape Town
Manila
Shanghai Baghdad
Tokyo
Beijing
Cairo
Amsterdam
Rome
London
Madrid
WORKED
Example
2
WORKED
Example
3
A
B
X
E
F
S
N
F'
A'
B'
C
D
D'
X'
60N
45N
30N
15N
0
60S
C h a p t e r 5 N a v i g a t i o n 255
some idea of the problems arising. All maps, then, possess some form of distortion.
However, since maps are used for navigation, the 2-dimensional representation must
still be extremely accurate even if it contains distortion.
The charts most commonly used for shipping are drawn using a projection
known as Mercators projection. This is a cylindrical projection based on the
following idea. Imagine a light source at the centre of the sphere. This sphere is
then enclosed in a cylinder, and shadows from all land masses on the sphere are
projected onto the walls of the cylinder. The curved wall of the cylinder is then
opened up to give a 2-dimensional map (see the gure on the previous page).
A portion of the meridian NES is shown projected onto the cylinder wall. D is pro-
jected to D, X to X, B to B, A to A and F to F. The point E on the equator is
touching the cylinder wall and maps onto itself. The curved section DEF of this mer-
idian then is mapped onto a straight line DEF on the cylinder wall. All meridians will
likewise appear as straight vertical lines and parallel to one another.
The parallels of latitude 15N, 30N, 45N, 60N and 75N are equidistant on the
Earths surface. This can be easily veried by examining a model globe of our planet.
All parallels of latitude which pass through E, A, B, X and D are separated by a con-
stant distance on the Earths surface. When mapped onto the cylinder wall, these lines
are still parallel, but are no longer equidistant. Note that DX = XB = BA = AE,
but DX (on the map) > XB > BA > AE. Consequently, distortion in the higher lati-
tudes results. Distortion in this region is also due to the fact that all meridians on our
Earth become closer as we approach the poles, yet are drawn as parallel lines on the
Mercators projection. Regions near the poles, such as Greenland, appear much larger
on a Mercators map than they do on a globe.
For navigation purposes,
Mercators projection is useful
between 60N and 60S.
Despite the distortion as we
move away from the equator,
one advantage of this form of
mapping is that meridians are
equally spaced parallel lines and
are perpendicular to the lines of
latitude (see gure at right).
This simplies the task of a
navigator who can now work
with straight lines rather than
curves.
Another advantage is that distance can easily be determined from these charts by
using the latitude scale (outlined later in this chapter).
Mercators projection
Mercators projection is but one method of attempting to represent our 3-dimensional
world on a at page. By referring to an atlas or the internet, identify projections
which preserve rather than distort land area.
Also, nd examples of projections which preserve angles correctly.
Why is it that both area and angle cannot simultaneously be preserved on one
2-dimensional representation?
10N
0
10S
20S
0 10W 10E 20W 30W 20E 30E 40E
Parallel of latitude
M
e
r
i
d
i
a
n

o
f

l
o
n
g
i
t
u
d
e
A
B
C
D
Longitude
L
a
t
i
t
u
d
e
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
Accurate position description
Any point on the Earths surface can be described by stating latitude, then longitude, in
degrees. To describe a location accurately, the degree is further divided into 60 minutes.
Navigation charts will often show latitude in degrees, minutes and tenths of minutes.
The chart below shows a section off the coast of Brisbane. Point A has a latitude of
276.3S and longitude of 15336E. Point B is at (279.6S, 15345.9E). Note that in
this chart, each minute of latitude and longitude has been divided into fths. Alternative
minute divisions have been shaded to assist with ease of reading.
15335'E 15340'E 15345'E
15335'E 15340'E 15345'E
27S
275'S
2710'S
27S
275'S
2710'S
C
H
X
G
E A
F B
Y
D
Use the chart above to give the position of point E.
THINK WRITE
Find latitude rst. The scale is increasing as we go
down the scale. Point E is somewhere between
276S and 277S. The minutes are divided into
fths. Point E is midway between 276.2S and
276.4S; that is, 276.3S.
Point E is at latitude (276.3S).
The longitude scale is increasing as we go across
from left to right. Point E is greater than 15345E,
but just less than 15346E. As it is midway
between 45.8 and 46.0, use 45.9.
Point E is at (276.3S, 15345.9E).
1
2
4
WORKEDExample
1 = 60 minutes, written as 60.
remember
Accurate position description
1 Use the chart on page 256 to give the positions of points:
a F b G c H d C e X f Y.
2 Your teacher will supply a copy of the chart on page 256. Plot the following positions
on this copy.
a (27S, 15345E) b (276.3S, 15340E)
c (277.4S, 15339.8E) d (2710S, 15342.7E)
3 The gure below shows a portion of a map of Whitsunday Passage. Name the feature at:
a (205S, 14854.7E) b (205.1S, 14853.4E) c (203.8S, 14857.8E).
5B
WORKED
Example
4
ISLAND
Hayman
Island
Whitsunday
Island
Double
Rock
Butterfly
Bay
Mackerel
Bay
N
a
r
a

I
n
l
e
t
M
a
c
o
n
a

I
n
l
e
t
Pinnacle Point
Langford
Island
Black
Island
Dolphin Point
Dumbell
Island
Whitsunday
Cairn
Bird
Island
Hook
Peak
Mt
Sydney
WHITSUNDAY
GROUP
HOOK
151
377
233
148
160
459
185
232
262
408
193
238
149
268
183
225
232
385
375
390
144
250
390
224
149E 55'
5'
2010'S
4 Use the map of the Whitsunday Passage on page 257 to give the position of:
a Dolphin Point on Hayman Island
b Double Rock (off the north-east coast of Hook Island)
c Langford Island (to the south of Hayman Island)
d the entrance to Nara Inlet
e the entrance to Macona Inlet.
The nautical mile and the knot
One nautical mile is dened as the length of the arc of a
great circle which subtends an angle of 1 minute (1) at the
centre of the Earth; that is, it is the distance between two
points on the same line of longitude or meridian with a dif-
ference in latitude of 1. The nautical mile is an SI unit and
is equivalent to 1852 metres.
The gure at left shows a cross-section
of the Earth with centre C and North (N)
and South (S) Poles. Points A and B lie on
the line of longitude joining the two poles.
Angle ACB is an angle of 1 minute ,
so the distance AB on the Earths
surface is 1 nautical mile.
The distance between two locations on a
map is measured using an instrument with
two points called dividers. The dividers are
spread so that the two points are directly
over the two locations. The spread of the
dividers is then transferred to the latitude scale. The
number of minutes on this scale gives the distance in
nautical miles.
Because some distortion is inherent in all charts, dis-
tance is always determined on the latitude scale in the
region that is of similar latitude to where the distance is
being determined.
When measuring distance, use a scale correct
for that latitude.
Tidal variation
Use the Seabreeze weblink in your eBookPLUS, or a similar website, to investigate
the tidal variation in your local area. This site displays the variation graphically. Now
choose a different location in the state or country and observe the variation in that
region. At what stages of the tide is the movement of water the least and most?
Why might information such as this be very useful to boat owners anchoring at
island beaches for day trips?
Investigate the rule of twelfths and how it can be used to estimate tide height at
any time if one knows the time and height of high and low tide.
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
C
A
B
N
S
AB = 1 n mile
1' =
1
60
1
60
------

The mechanical harpoon log
was patented in 1802.
The knot is a unit of velocity and is dened as 1 nautical mile per hour. Wind speeds
are often given in knots.
The term knot has its origins in the 16th century, when a piece of wood or log was
thrown from the stern of the ship to determine speed. The log was attached to a rope
that had a number of knots tied in it at equal spacings. The number of knots passing the
rear of the vessel in a xed period of time, usually 30 seconds, gave a measure of
speed.
Several devices have been invented that more accurately determine speed. The device
pictured on the previous page, patented in 1802, was the rst commercially available
instrument designed for this task.
Study this device closely. How do you think it worked? Which pieces might move as
it operates?
Convert 1245 to minutes.
THINK WRITE
1 degree = 60 minutes, so 12 is
12 60 or 720 minutes.
1245 = 12 60 + 45
Now add the remaining 45
minutes to 720.
= 720 + 45
= 765
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WORKEDExample
Add 1337 to 3852.
THINK WRITE
Keep the minutes and degrees
separate. Add the minutes rst.
37 + 52 = 89 or 129
Now add the degrees. 13 + 38 = 51
Add the sum of minutes to the
sum of degrees.
1337 + 3852 = 51 + 129
= 5229
1
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WORKEDExample
Subtract 2546 from 4713.
THINK WRITE
Convert each to minutes, then
subtract.
4713 2546 = (47 60 + 13) (25 60 + 46)
= 2833 1546
= 1287
Convert 1287 to degrees by dividing
by 60.
= 21.45
Convert 0.45 to minutes by
multiplying by 60.
= 2127
1
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WORKEDExample
The scale in the gure at right indicates latitude.
Find distances a XY and b XZ.
THINK WRITE
a (a) X has a latitude of 2724.6S.
(b) Y has a latitude of 2730.6S.
(c) The difference in these latitudes will give
the distance in nautical miles.
a
Calculate the difference in latitude. 2730.6S 2724.6S = 6
XY = 6 n mile
b (a) X has a latitude of 2724.6S.
(b) Z has a latitude of 2730S.
(c) The difference in these gives the
distance.
b
Calculate the difference in latitude. 2730S 2724.6S = 5.4
XZ = 5.4 n mile
2725'S
2730'S
X
Y
Z
1
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8
WORKEDExample
Find the shortest distance in nautical miles and kilometres from A (40N, 150E) to
B (30S, 150E).
THINK WRITE
A and B are on the same meridian.
Calculate the angular distance.
Angular distance = 40 + 30
= 70
Convert 70 to minutes. (Recall that
1 = 60.)
= 70 60
= 4200
Convert distance AB to n mile.
Recall that 1 = 1 n mile.
AB = 4200 n mile
Covert AB to kilometres. Recall that
1 n mile = 1.852 km.
AB = 4200 1.852 km
= 7778 km
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WORKEDExample
A vessel picks up anchor off Sandy Cape, Fraser Island (2430S, 153E) at 7.30 am, and
travels north to Saumarex Reef (2150S, 153E). The vessel averages 12 knots. Find the
estimated time of arrival.
THINK WRITE
Find change in
latitude.
Latitude change = 2430 2150
= (24 60 + 30) (21 60 + 50)
= 1470 1310
= 160
Convert minutes to
n mile. Recall that
1 = 1 n mile.
Distance = 160 n mile
Calculate time.
(a) Recall that speed
= .
Speed =
12 n mile/h =
(b) Rearrange to nd
time.
Time =
= 13.33 hours
Convert to hours and
minutes.
= 13 h 20 min
Calculate ETA: Boat
departs at 7.30 am.
ETA is 13 hours 20 min after 7.30 am.
ETA = 8.50 pm on the same day.
1
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3
distance
time
-------------------
distance
time
-------------------
160 n mile
time
--------------------------
160
12
---------
4
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WORKEDExample
1. A nautical mile is the length of the arc of a great circle which subtends an angle
of 1 minute (1) at the centre of the Earth.
2. Distance is always determined on the latitude scale in the region that is of
similar latitude to that at which the distance is being measured.
3. 1 degree = 60 minutes (1 = 60).
4. 1 minute = degree.
5. 1 nautical mile (n mile) = 1852 metres.
6. 1 knot = 1 nautical mile per hour.
7. Speed = .
1
60
------
distance
time
-------------------
remember
The nautical mile and the knot
1 Convert to minutes:
a 2 b 2.5 c 2342 d 4751.7.
2 Add:
a 315 and 628 b 1526 and 2342.7.
3 Subtract:
a 1128 from 2845 b 176.4 from 183.7.
4 In the gure at right, C is the Earths centre, E is
a point on the equator, G is Greenwich, I is at
(60S, 80E) and F is at (50N, 30W).
a Name two points on the same parallel of latitude
as I.
b Name two points on the same parallel of latitude
as F.
c Name two points on the same meridian as E.
d State the position of:
i H ii B iii J iv K v A.
e Find the shortest distance across the Earths
surface in nautical miles from the North Pole to:
i F ii H iii E iv I v D.
f Find the shortest distance in nautical miles from:
i H to I ii A to J.
g Calculate the shortest distance in nautical miles from the
equator to:
i D ii J iii H.
5 Calculate the distance in nautical miles from Brisbane (27.5S, 153E) to:
a the equator b the South Pole c the North Pole
d Woodlark Island (off the east coast of Papua New Guinea (9S, 153E).
6 The vessel Blue Fin covers 40 nautical miles in 5 hours. Find its speed in knots.
7 The Trader Horn leaves Wynnum Creek at 11 am and arrives at Dunwich at 3 pm. It
has travelled 14 nautical miles. Calculate the speed in:
a knots b km/h.
8 Find the unknowns:
Speed (knots) Distance (n mile) Time (units given)
a 25 6.5 hours
b 1548 5 days 3 hours
17 c 17 hours
125 d 25 minutes
40 1200 e hours
72 12 f minutes
5C
WORKED
Example
5
WORKED
Example
6
WORKED
Example
7, 8
eBookplus eBookplus
Digital doc:
SkillSHEET 5.1
Angle measures in
degrees and minutes
WORKED
Example
9
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9 The youngest person to circumnavigate the
Earth was an 18-year-old Australian, Jesse
Martin. He sailed into Port Philip Bay,
Victoria (and into history!) on 31 October,
1999, completing a continuous and solo
50 000-kilometre voyage in the 10-metre
vessel, Lionheart. Jesses journey, which
included the rounding of the notorious
Cape Horn, took 328 days.
a How many hours did Jesse spend alone
at sea?
b Calculate the average speed of Lion-
heart in kilometres per hour and
knots. Round your answers to the
nearest 0.1.
Note: This amazing adventure is described
in the book Lionheart. A video of the same
title is also available.
10 A and B are two points on the Earths surface on the 80E meridian. Their latitudes
differ by 60.
a Find the distance between them in nautical miles.
b Another two locations, C and D, are likewise separated by 60 in latitude and lie
on the 30W meridian.
i Find the distance between C and D.
ii Why is this answer equal to that of a?
c A ship travels from C to D with an average speed of 18 knots. Find the time
taken for the journey.
11 A sailing boat leaves from a point off the Barrier Reef (20S, 150E) and
arrives at Orangie Bay, Papua New Guinea (10.5S, 150E) after sailing
for 5 days 3 hours. Find:
a the distance travelled
b the average speed in knots.
12 A vessel departs a point
off Moreton Island
(2715S, 15340E)
at 1.30 pm and sails
north to Fraser Island
(2445S, 15340E).
The vessel averages
11 knots. Find the ETA.
13 Why is it that the nautical
mile could not be dened as
the distance between two
points on the same line of
latitude with a difference in
longitude of 1?
WORKED
Example
10
1 Which comes rst when describing position: latitude or longitude?
2 Which scale on a map is used to determine distance
in nautical miles: latitude or longitude?
3 How many minutes make 1 degree?
4 What distance in metres is equivalent to
1 nautical mile?
5 A vessel changes its latitude by 230. Its
longitude remains unchanged. How many
nautical miles has it covered?
6 Give the rule relating speed, distance and time.
7 One nautical mile per hour is equal to which unit
of speed?
8 A boat completes a 30 n mile trip in 5 hours. What is its speed?
9 How far is the South Pole from the equator, in nautical miles?
10 A boat leaves port at 2 pm and travels at 15 knots to cover a distance of 45 n mile.
What is its ETA?
Distance to the horizon
If we know the height of our position above sea level (that is, our altitude), the
distance to the horizon can be determined.
In the gure at right, the circle represents the
Earth with centre C. An observer is at P,
a distance of AP above sea level and can see
the horizon at H, a distance of HP from the
observer.
1 What is the magnitude of PHC? Why?
You may wish to draw several lines from
various positions outside the circle to horizons
(that is, lines just touching the circle) to see if
this is always the case.
2 Can you recall a theorem relating the three sides CH, HP and PC? State the
relationship between these sides. (Hint: Name a great Greek mathematician
beginning with P.)
3 Is there a relationship between CH and AC? Can you supply a value for these
lengths? (See Review of Earth geometry section.)
4 Determine the distance to the horizon if the height above sea level is:
a 50 m b 500 m c 1 km d 10 km.
5 As height above sea level increases, what happens to the distance to the
horizon? If we lived on a at Earth, would we expect the same results that we
calculated in question 4?
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Using the compass
The most important aid to a navigator is the compass. It allows the vessel to be steered
on a predetermined course, and its accuracy is vital to the safety of all seafarers.
Types of compass
The magnetic compass has many forms. The simplest type of magnetic compass has a
free-swinging needle that aligns itself with the Earths magnetic northsouth line.
These are usually quite inexpensive and in the past have even been built into the soles
of shoes! Most small boat owners would possess a hand bearing compass and many
types of these are readily available (see gure a below). The needle is sometimes built
into a card which is immersed in alcohol to protect the swinging card from impact or
sudden movement. The card is graduated from 0 to 360. Many boats are also tted
with a master compass that is permanently mounted in a location that is visible to the
helmsman (see gure b below).
Compass error can cause many problems to air, sea and land navigators, and so
compasses must be checked regularly for accuracy. Compass error can be caused by
damage or by external magnetic inuences. If a magnet or even a piece of steel is
brought near a compass, the needle deviates. Also, the presence of electrical currents
can cause the compass needle to deviate. Even the proximity of canned foods can cause
a deviation. Fortunately, there are procedures that can easily and accurately determine
the sum total of these errors, which are referred to as errors of deviation. Such pro-
cedures are beyond the scope of this course, and in all exercises in this text we will
assume that these errors do not occur.
Figure a: Hand bearing compass Figure b: Master compass
Another type of compass, the gyro compass, operates on a different principle from
that of the magnetic compass. The gyro compass consists of a spinning gyroscope
whose axis aligns with the true northsouth axis of the Earth. This has obvious advan-
tages as an aid to navigation because magnetic variation no longer needs to be con-
sidered. Also, it is unaffected by the inuences that interfere with magnetic compasses.
However, these compasses are expensive and extremely sensitive precision instruments
which require reliable electricity sources.
Magnetic variation
The Earths magnetic north pole and true north are not in the same position on the Earths
surface. True north is the northern location of the Earths axis of spin, which is the basis
for lines of latitude and longitude. Magnetic north is the position on the Earths surface
of the north pole of the Earths internal magnet (really a magnetic eld that extends
out into space, and whose lines of force act like magnetic meridians). The axis of this
internal magnet is not the same as the axis of spin, and the magnetic north pole lies about
1500 km away from the true North Pole, in the Arctic Ocean north of Canada.
Consequently, depending on its position on Earth, a compass does not usually point
to true north. Magnetic variation is the angle between true north and the direction of
north as determined by a compass in that region (see gure below). In some shipping
channels magnetic variation can be as high as 30. (Can it be greater than this? Has it a
maximum? Where on the Earths surface would a compass have to be located to
achieve a maximum variation?)
Notes
1. Do not confuse magnetic variation (the angle) with other variations which affect the
angle.
2. The Earths magnetic eld changes slowly, as though the internal magnet is moving.
3. Magnetic meridians are related to lines of magnetic force. They are not straight
lines, being bent by local magnetic inuences such as mineral deposits. The mag-
netic variation will often be different in different parts of the one map.
Navigators must take this variation into account. It may deect to the east or west of
true north, but it is to the east in Queensland and in most parts of the Southern Hemi-
sphere. This variation is well researched and documented and is nearly always shown
on charts at the centre of what is called the compass rose, as is shown in the gure
below.
9
0
8
0
7
0
6
0
5
0
4
0
3
0
2
0
10
0
1 8 0
1 7 0
1
6
0
1
5
0
1
4
0
1
3
0
1
2
0
1
1
0
1
0
0
2
7
0
2
6
0
2
5
0
2
4
0
2
3
0
2
2
0
2
1
0
2
0
0
1 9 0
350
3
4
0
3
3
0
3
2
0
3
1
0
3
0
0
2
9
0
2
8
0
9
0
6
0
3
0
0
1 8 0
1
5
0
1
2
0
2
7
0
2
4
0
2
1
0
3
3
0
3
0
0
T
r
u
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M
a
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n
e
t
i
c
M
ean Variation
D
ecreasing
01' A
nnually
1118' (2000)
This compass rose is taken from a chart of Moreton Bay. The magnetic variation at
this point on the Earths surface in the year 2000 was 1118E, and has since decreased
by 1 annually. Such variation, once known, can easily be taken into account. If a vessel
is to follow a bearing of 45T (45 true or 45 to the east of true north) and is in a
region where the magnetic variation is 10E, then the compass course to steer must be
35C (the C indicating that this is the bearing with respect to the compass in that
location).
If a vessel is to follow a bearing of 238T in a region where magnetic variation is
4W, then the course to steer must be 242C.
The conversion from true (T) to compass (C) bearing can easily be recalled by the
rhyme:
Variation east compass least (subtract)
Variation west compass best (add).
This means that if the magnetic variation is to the east, then the compass bearing will
be the smaller of the two bearings.
If the magnetic variation is to the west, then the compass bearing will be the larger
of the two bearings.
In Queensland, magnetic variation is to the east.
Convert the true course to a compass course for the given variation.
a 138T, variation 1130E b 22550T, variation 520W
THINK WRITE
a Recall: Variation east compass
least. This means that the compass
course must be less than the true
course.
a
Subtract 1130 from 138. Compass course = 138 1130
= 12630
b Recall: Variation west compass
best. This means that the compass
course must be more than the true
course.
b
Add 520 to 22550. Compass course = 22550 + 520
= 23110
1
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WORKEDExample
Using the compass
1 Find the compass course for the given variation and true bearings.
a True course 135, variation 7E b True course 302, variation 10E
c True course 189, variation 4W d True course 32, variation 8W
2 A skipper steers a vessel on a course of 280C. The chart for this locality indicates the
magnetic variation to be 11E. Find the true course.
3 A vessel follows a course of 115C, which is identical to 121T. Find the magnetic
variation.
4 Find the unknowns in the table below.
True course 125T 219T 311T d
Variation 5E 7W c 412E
Compass course a b 315C 25317C
Kestrel follows a compass course of 129. The skipper
notes that this is identical to a true course of 140.
Find the magnetic variation in this region.
THINK WRITE
The compass course (129)
is less than the true course
(140). Recall: Variation
east compass least.
The variation must
be to the east.
Subtract the compass course
from the true.
Magnetic variation
= 140 129
= 11E
1
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12
WORKEDExample
To convert a true bearing to a compass bearing:
1. Subtract the magnetic variation from the true bearing if variation is to the east.
2. Add the magnetic variation to the true bearing if variation is to the west.
Variation east compass least
Variation west compass best
remember
5D
WORKED
Example
11
WORKED
Example
12
Ruler
A
Set square on
line of AB
B
Magnetic
variation
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180 190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
340
350
Compass bearings and reverse bearings
True bearings
The gure below shows a section of a chart off the coast of Queensland. If a navigator
is intending to sail from A to B, the true bearing of B from A can be determined by a
variety of methods depending on the equipment available. Three methods are
described: using a ruler, set square and pencil; using parallel rulers; and using a chart
plotter.
Method 1: Using a ruler, set square and pencil
The ruler, set square and pencil are used as follows.
1. Draw a line on the chart from A to B.
2. The exact direction A to B is then transferred to the
centre of the nearest compass rose on the chart.
The gure at right shows how this can be done
using a ruler and set square. One edge
of the set square is placed along the
line AB, and a ruler
held perpendicular to
AB. The set square is
moved until it is aligned
with the centre of the
compass rose. The
true bearing can then be
read, in this case 30.
(This could then be
adjusted to a compass
course by subtracting
11 variation E from 30).
A
B
E
C
D
0
3
3
0
3
0
0
2
7
0
2
4
0
2
1
0
1 8 0
1
5
0
1
2
0
9
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3
0

A
B
Compass rose
0
3
3
0
3
0
0
2
7
0
2
4
0
2
1
0
1 8 0
1
5
0
1
2
0
9
0
6
0
3
0
Method 2: Using parallel rulers

Although a set of parallel rulers is more
expensive than a ruler and set square, it is a very
simple device to operate and provides a high
degree of accuracy. It is used as follows.
1. Place one edge of one of the parallel rulers
on the line joining A to B.
2. Apply pressure to the ruler on the line AB
and slide the other ruler across until it is
aligned with the centre of the compass rose.
The true bearing can then be read. Parallel
rulers have this name because they are con-
structed with a mechanism which ensures
that the two rulers always stay parallel.
You may have to walk the rulers some
distance to the nearest compass rose.
Method 3: Using a course plotter (chart plotter)
A course plotter (or chart plotter) is a at, transparent
plastic sheet with a grid and compass rose marked on
it. There is a string tied to the centre of the compass
rose. Chart plotters are very simple devices to use,
and no lines need to be drawn on charts.
An inexpensive chart plotter can be made by
simply drilling a small hole in the centre of a full
circle protractor and passing a piece of string through
it. A knot is tied at one end of the string to secure it.
The chart plotter is used as follows.
1. Place the centre of the compass rose on the chart
plotter over point A on the chart, aligning the grid
lines of both the chart plotter and the chart.
2. Extend the string to point B so that it is taut. The bearing can now be read from the
compass rose.
Reverse bearings
If the bearing of B from A is 47T, then the bearing of A from B must be 227
(47 + 180; see gure below left).
Likewise, if the bearing of X from Y is 280T, then the bearing of Y from X must be
100T (see gure below right).
0
String
180
270 90
A
30
227
47
True north
A
B
100
280
X
Y
True north
The bearing of B from A is known as the reverse bearing or back bearing of A
from B. Note that these bearings differ by 180. Likewise, the bearing of X from Y is
the reverse bearing of Y from X (280T and 100T).
If the rst bearing is less than 180, add 180 to get the reverse bearing. If it is more
than 180, subtract 180.
Find the bearing of P from Q in the two situations below.
a b
THINK WRITE
a Recall that reverse bearings differ by 180. a
Add 180 to 60. Bearing of P from Q = 60 + 180
Bearing of P from Q = 240T
b Recall that reverse bearings differ by 180. b
Subtract 180 from 320. Bearing of P from Q = 320 180
Bearing of P from Q = 140T
60
P
Q
True north
Q
P
320
True north
1
2
1
2
13
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 13
int-0472
Use the chart on page 269 to answer the following.
a Find the distance in nautical miles from A to B. (Shaded divisions on latitude scale each
represent 1.)
b A vessel goes from A to B in 20 minutes. Find its speed in knots.
THINK WRITE
a Dividers are spread with one point on A and the other
on B. (A ruler can also be used, or just a straight edge
of paper can have the distance marked.)
a
This distance (6) is transferred to the latitude scale. AB = 6 n mile
b Calculate speed. b
Recall that speed = . Speed =
Calculate time in hours. Time = 20 min
= h
= 0.333 h
Calculate speed.
Speed =
= 18 knots
1
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distance
time
-------------------
distance
time
-------------------
2
20
60
------
3 6 n mile
0.333 h
-------------------
14
WORKEDExample
Compass bearings and
reverse bearings
1 Give the bearing of X from Y in each of the following.
a b
c d
2 In each part of question 1, give the bearing of Y from X.
3 Taking true north to be the top of the page, use a protractor, ruler and pencil to sketch
a diagram so that the true bearing from X of:
a A is 30T and AX = 4 cm b B is 45T and BX = 6 cm
c C is 80T and CX = 7 cm d D is 125T and DX = 5 cm
e E is 210T and EX = 3 cm f F is 320T and FX = 4 cm.
4 Use the diagram constructed in question 3 above to nd the bearing of:
a F from A b A from C c B from D
d E from C e F from D f X from B.
Use the chart on page 269 to answer questions 5 to 7.
5 Find the following distances in n mile. (Recall that the latitude scale is to be used.)
a AD b AE c AC d CB e CD f ED
6 A vessel departs E and travels 4 n mile on a bearing of 302T.
a Plot its nal position.
b If it travels for 20 minutes, nd its average speed.
7 A vessel sails from B to E.
a On what true bearing does it sail?
b If the magnetic variation is 11E, what compass course does it follow?
c The vessel is averaging 12 knots. Find the time taken.
d What is the compass bearing of B from E?
5E
WORKED
Example
13
True north
50
Y
X
True north
Y
X
60
True north
Y
X
230
True north
Y
X
55
WORKED
Example
14
eBookplus eBookplus
Digital doc:
WorkSHEET 5.1
1 Give the name of the device which aligns itself with the Earths magnetic north
south line.
2 The North Pole, which is the starting point for lines of longitude, is either true
north or magnetic north. Which one?
3 When we are relating compass bearings to a map, we have to take account of the
difference between true north and magnetic north (in degrees). What is the name
we give to that difference?
4 If variation is to the east, which is least: true bearing or compass bearing?
5 If variation is to the west, which is least: true bearing or compass bearing?
6 Convert a compass course of 50 to a true bearing if variation is 10E.
7 Convert a true bearing of 146 to a compass bearing if variation is 12W.
8 By what angle do reverse bearings differ?
9 The distance between two points on the surface of the Earth can be determined by
comparing their distance on a chart to which scale: latitude or longitude?
10 A vessel travels 56 nautical miles in 8 hours. What is its speed in knots?
Fixing position
The ability of navigators to determine the position of their vessel
at any time is an extremely important and often necessary skill.
This is called xing position. Coastal navigators look for objects
that can easily be seen on land. (Mariners crossing the oceans
rely on celestial navigation; that is, determining position by
observing the location of certain heavenly bodies.)
Landmarks that are often used in coastal navigation include
prominent features such as lighthouses, headlands, church
steeples and small islands. Such useful landmarks will be
shown on charts. These landmarks can be used to x the
vessels position. Two or more position lines are marked on the
chart and the intersection of these lines indicates the vessels
position. Several methods of determining a x are available.
Fix by cross bearings
The cross bearing x is the most commonly used, and most easily mastered method
of establishing a x. It requires at least two bearings to objects spaced ideally at
Reverse bearings
Students are to work in pairs for this activity. Each student has a compass and takes
the compass bearing of the partner. The two bearings of each pair of students are
recorded. Students then move to another position and again take bearings to one
another. Repeat this process 10 times. What is the relationship between a bearing
and its reverse bearing?
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approximately 90. The gure below shows how a x has been determined. A navi-
gator on board the vessel notes the bearings of three prominent landmarks that are also
marked on the chart. These bearings are converted to true bearings and then are
marked on the chart as shown.
The intersection of the position lines of the lighthouse (050T), cliff headland
(342T) and water tower (285T) x the position. Because of small errors, the intersec-
tions of the lines form a small triangle, known as a cocked hat. This is circled and the
time the x was taken is noted (in this case 1130 hours, or 11.30 am). This gives an
excellent description of the vessels position at that time.
True north
0
5
0
T
3
4
2
T
2
8
5
T
Lighthouse
Cliff headland
Water
tower
1130
At 10.30 am, the yacht Lady Jacqlin records the bearing of a church steeple (070T) and an
aerial (105T). At 11.15 am, the bearing of the church (095T) and aerial (200T) are noted.
True north
Church
steeple
Aerial
N
35S
1'
2'
3'
4'
5'
6'
7'
8'
Latitude
scale
15
WORKEDExample
a Use this information to x the vessels position at these times.
b How far has the vessel travelled in this time?
c Calculate the speed of the vessel in knots.
d On what true bearing is the vessel travelling?
e How far is the vessel from the church at 11.15 am?
Continued over page
THINK WRITE
a For the position at 10.30 am:
(a) Place the protractor centre over
the church steeple.
(b) Measure an angle of 70
clockwise from true north.
(c) Draw the 70 position line,
extending it across the map.
a
Draw the 70 position line as shown on the
chart on the following page.
(d) Move the protractor to the aerial.
(e) Measure an angle of 105T.
(f) Draw this position line and
extend it back until it intersects
the 70 position line.
Draw the 105 position line.
(g) Draw a circle around this point
of intersection and mark the
time 1030.
Draw a circle, write at 1030 (see chart).
For the position at 11.15 am:
(a) Draw the 95 and 200 position
lines as at 11.15 am.
(b) Extend both back to the point of
intersection.
Draw the position lines.
(c) Draw a circle.
(d) Note the time.
Draw a circle.
Time is 1115.
b Draw a line joining the positions at
1030 and 1115.
b Draw a line joining the points.
Using dividers or a ruler, transfer the
distance between these points to the
latitude scale and measure this
distance. Recall that 1 = 1 n mile.
1
2
1
2
THINK WRITE
Measure the distance in n mile. Distance = 8.6 n mile
c Recall that speed =
The distance travelled is 8.6 n mile,
and the time is from 1030 to 1115;
that is, 45 minutes. Convert this to
hours and determine the speed.
c Speed =
Time = 45 minutes
= hours
= 0.75 hour
Speed =
= 11.5 n mile/h
= 11.5 knots
d Place the protractor at the 1030
position. Measure the angle
clockwise from true north.
d True bearing (course) = 57
e Using dividers or a ruler, transfer the
distance between the 1115 position
and the church steeple to the latitude
scale.
e Distance = 4.5 n mile
3
True north
Church
steeple
Aerial
1030
1115
0
7
0
T
095T
200T
1
0
5
T
70
95
105
N
35S
1'
2'
3'
4'
5'
6'
7'
8'
Latitude
scale
distance
time
-------------------
distance
time
-------------------
45
60
------
8.6 n mile
0.75 h
------------------------
At 8.00 am, the vessel Aqua Jet is on a course of 270T. Her navigator notes that the
bearing of a tower is 0T. At 8.30 am, the bearing of the same tower is 045T. Aqua Jet is
cruising at 18 knots.
a Draw a sketch showing this information.
b How far has the vessel moved between the two sightings?
c How far is the vessel from the tower at 8.00 am?
d How far is the vessel from the tower at 8.30 am?
e If Aqua Jet continues on this course at the same speed, what bearing of the tower is
expected at 9.00 am?
Continued over page
THINK WRITE
a The vessel is on a course of 270T.
Take true north to be towards the top
of the page. Measuring 270
clockwise from north, the vessels
direction can be represented as a
straight line from right to left.
a
Label a point on this line to represent
the position at 8.00 am. Now draw the
0T position line directly upwards
from this point.
At a point to the left of the 0800 point,
mark the position at 0830. (As only a
sketch is required, there is no need to
draw the diagram to scale. A scale
diagram, though, could be drawn
using, say, 1 cm to represent 1 n mile.)
Now draw the 0830 position line at
45. Extend it sufciently so that it
intersects with the 0800 position line.
b To determine distance, recall that
speed = .
b
Convert time to hours. 30 min = hours
= 0.5 h
Calculate distance. Distance = speed time
= 18 n mile/h 0.5 h
= 9 n mile
c The triangle has one angle of 90
and another of 45, so the remaining
angle must be 45.
c TQP = 45
TPQ = 90
So QTP = 45
1
Tower
Course
45
Q
T
P
0830 0800
270T
2
3
1
distance
time
-------------------
2
30
60
------
3
1
16
WORKEDExample
THINK WRITE
Hence, the triangle is isosceles with two
equal sides, TP and QP.
TP = QP
= 9 n mile
d The unknown distance is the hypotenuse
of a right-angled triangle. We know the
angle and adjacent side.
Recall that cosine = .
d cos 45 =
Rearrange to make H the subject. H =
Calculate H. The distance is 12.73 n mile.
e Extend the line of travel to the left. After
1 hour the vessel will have covered
18 n mile. L TRP is a right-angled
triangle and we know the lengths of the
adjacent and opposite sides; therefore,
recall that tangent = .
e
tan x =
Calculate tan x. tan x =
= 0.5
Now use the inverse function of your
calculator to nd x.
x = 27
The bearing of the tower at 9.00 am from
R is measured from true north clockwise
down to the line TR.
Bearing = 90 27
Bearing = 63T
The bearing at 9.00 am is 63T.
2
1
adjacent
hypotenuse
---------------------------
9
H
----
2
9
cos 45
------------------
3
1
opposite
adjacent
--------------------
Tower
45
Q R
T
P
0830 0800 0900
x
TP
RP
-------
2
9
18
------
3
4
1. The intersection of two or more position lines marked on a chart can be used to
determine a vessels position.
2. The intersection of three position lines forms a small triangle known as a
cocked hat.
remember
Fixing position
1 The bearings of a tower
(090T) and church
(135T) are recorded at
1400 hours (see gure at
right). At 1430 hours, the
bearings are 030T and
090T respectively.
a Fix the position at
these times on the
gure.
b Plot the course of the
vessel and determine
its true bearing.
c How far has the
vessel travelled?
d At what speed is the
vessel travelling?
e At 1430 hours, how
far is the vessel from
the church?
2 At 0830 hours the true bearings, in the gure below, of A (270T) and B (330T) are
recorded. At 0900 hours, the true bearings are 200T (A) and 270T (B).
5F
WORKED
Example
15
28S
1'
2'
3'
4'
5'
6'
7'
8'
Tower
Church
Latitude
scale
True north
21S
1'
2'
3'
4'
215'
6'
7'
8'
9'
2110'
C
Q
B
P
A
Latitude
scale
a Fix the vessels position at these times.
b How far has the vessel travelled in this time?
c Calculate its speed.
3 A vessel is at Point P (in the gure in question 2) at 6.00 am.
a What true bearings of A, B and C with respect to P are expected?
b The vessel travels directly to Q. What are the true bearings at Q of A, B and C?
c The time noted at Q is 6.25 am. Calculate the vessels speed in knots.
d Estimate the vessels position at 6.50 am by giving bearings of A, B and C. Assume
it maintains its previous direction and speed.
4 The yacht Cool Change is at point X, in the gure below, at 2.45 pm.
a What true bearings of the tower and antenna are expected with respect to X?
b If Cool Change is on a course of 030T and moving at 10 knots, plot the expected
positions at 3.15 pm and 3.45 pm.
5 At 10.15 am a schooner on a course 090T sights a lighthouse on a bearing of
180T. At 10.45 am the bearing of the lighthouse is 225T. The speed of the vessel
is 28 knots.
a Draw a sketch representing this information.
b How far has the vessel travelled in the time between the two sightings?
c How far is the vessel from the lighthouse at 10.15 am?
d How far is the vessel from the lighthouse at 10.45 am?
e If the schooner continues on this course, what bearing of the lighthouse is
expected at:
i 11.15 am?
ii 11.45 am?
6 A ship departs A and sails 50 n mile on a bearing of 0T to B. It then sails 60 n mile to
C on a bearing of 120.
a Sketch a scale diagram to represent this information.
b Find the distance from C to A.
c Give the bearing of A from C.
40'S
Tower
Antenna
True north
1445
X
WORKED
Example
16
Transit x
If a vessel notes that two prominent objects are in line, then the vessel must lie on the
line joining these two objects. This line is known as the transit line and a x arrived at
by using this method is known as a transit x.
The gure below shows that if a vessel has sighted the creek beacon and tall pine
tree in line, then the vessel must be somewhere on this transit line. Further, if a promi-
nent roof top and the jetty end are simultaneously in line, then this gives another
transit line. The intersection of these transit lines gives the vessels position. This is
known as a two-transit x. Such a x is quite accurate. However, sufcient prominent
landmarks are not always available. More often, a single transit line and a position line
are used.
Navigation methods through the ages
For thousands of years, accurate navigation over land and sea has been extremely
important for exploration, trade and survival.
Research the navigational methods used by indigenous groups, Captain Cook,
Sir Francis Chichester, Amelia Earhart, Sir Charles Kingsford Smith and
Kay Cottee.
How do inertial, radio and satellite navigational systems operate, and how are
they helpful in everyday life?
What is an EPIRB and why is it now mandatory for many vessels to carry this
item? Someone in class may be able to bring one along and describe its operation.
(Warning do not activate it!)
How is the computerised navigational system on a ship or commercial shing
boat or passenger vessel used? You may be able to visit the bridge of a ship or
wheelhouse of a vessel on a navigation excursion.
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Creek beacon
Tall pine tree
End of jetty
Prominent
roof top
A sherman is anchored on a particular
spot where he is catching a lot of sh.
He is keen to mark the location of this
spot. He notices that a hilltop, and
a tower to the front of it, are in line.
He also records the bearing of a
lighthouse as 210T. Use this
information to determine his position
on the chart.
THINK WRITE
The tower and hilltop are in line, so
draw a line joining these two points.
Place the protractor over the
lighthouse and measure an angle of
210 clockwise from true north.
Extend this position line until it
intersects the transit line of the
hilltop and tower. Circle this point
of intersection. (Alternatively, nd
the reverse bearing of 210; that is,
210 180 or 30. Measure an
angle of 30 at the lighthouse and
extend this position line up to
intersect the transit line.)
Tower
Hilltop
Lighthouse
True north
1
Tower
Hilltop
Lighthouse
30
True north 2
1
0
T
2
17
WORKEDExample
1. If an observer notes that two prominent shore objects are in line, then the
observer must be on the line of sight connecting these two objects. This line is
the transit line.
2. A position x using transit lines is known as a transit x.
3. A two-transit x uses the intersection of two transit lines to determine a
position.
remember
Transit x
Use the gure below to answer questions 1 and 2.
1 A vessel is positioned such that points A and B are in line and points C and D are in
line at 0730 hours.
a Use a two-transit x to locate the vessels position at this time.
b At this time, calculate the vessels distance from:
i A
ii E
iii C.
c The vessel heads true north until E is on a bearing of 270T. The time is now
0745 hours. Fix the vessels position at this time.
d Calculate the speed of the vessel.
2 A vessel is positioned such that E and D are in line. The bearing of A at the time,
2.30 pm, is 225T.
a Locate the vessel at 2.30 pm.
b The vessel sails on a bearing of 180T at 10 knots. Plot its position at 2.50 pm.
c Give the expected bearings of B, D and E at 2.50 pm.
Running x
The running x is used where only one shore object is visible. This is often the case when
navigating along the less-populated coastlines. Lighthouses that are separated by large dis-
tances are often the only means of determining a x at night. The procedure involved in
5G
WORKED
Example
17
E
47'
48'
49'
3750'S
51'
52'
53'
Latitude
scale
D
C
A
B
True north
45'
46'
obtaining a running x is as
follows, and is shown in the
gure at right.
1. Take the bearing of the shore
object O and note the time
(in the gure, 0800 hours).
2. Convert to a true bearing
and then use the reverse
bearing to plot the position
line OP from the shore
object. This position line
intersects the vessels
intended course already
plotted on the chart and will
give an approximate position
of the vessel at that time at
point P. Any error in this position is to the left or right of P, along the line OP.
3. After some time, (at least 30 bearing change) the bearing of the same shore object
is taken and converted to true. The reverse bearing is used to draw the second pos-
ition line (OQ) which will intersect with the vessels course at Q. The time of this
bearing is again noted (0830 hours).
4. Given that the vessel has been travelling for some time, previous information kept in
the vessels log can give a reasonable estimate of the speed. Since times have been
noted when the two bearings were taken, the distance travelled from point P can be
calculated. This is then marked with an X on the chart.
5. Using parallel rules, or set square and ruler, transfer the rst bearing through X so
that the line RX is parallel to the line OP. The intersection of the second position line
and the transferred bearing give a reasonable estimate of the vessels position (point
R). In this case, the estimated position earlier at P contained some error. The vessel
was almost certainly closer to the shore at 0800 hours, along the line OP.
In this case, previous information indicated that the vessel was travelling at
7 knots, so X is marked by measuring a distance of 3.5 n mile from P (the distance
covered by a vessel moving at 7 knots for 30 minutes). Note that the vessel has
moved towards the coast. This could be due to currents or winds and the navigator
must now take this into account. The x at R is considered more reliable than pos-
ition X since at 0830, the vessel was on the position line OQ.
Running x
Use the diagram on the following page to answer questions 1 and 2.
1 A vessel is at point P and has been travelling at 10 knots. The intended course is 0T.
The bearing of shore object O is taken at 0900 hours. At 0936 hours, the bearing of the
shore object is 270T.
a Draw the position line at 0936 hours using the 270T bearing of O.
b Calculate the distance the vessel has covered from P, assuming that the 10 knots
speed is maintained.
c Use the running x method to estimate the vessels position at 0936 hours.
5H
Shore object
O
R
Q
X
P
0830
0800
Intended course of vessel
True north
3.5 n mile
2 A vessel moving at 11 knots is at X at 1010 hours, and intends to follow a course of
180T. The bearing of Y is noted. At 1040 hours the bearing of Y is 260T.
a Plot the intended course.
b What true bearing of Y from X is expected at 1010 hours?
c Plot the position line at 1040 hours.
d Use the running x method to estimate the vessels position at 1040 hours.
Doubling the angle on the bow
The front of a boat is known as the bow, and the rear is called the
stern. To someone at the stern looking to the bow, the left-hand
side is known as port and the right-hand side starboard as shown
in the gure at right.
The doubling-the-angle-on-the-bow method is a reasonably
accurate way of determining how far a vessel is from the coast at
a particular time. It requires measuring the relative angle on the
bow. Figure a (over page, left) shows the relative angle on the bow
as 35 of a vessel at 8.00 pm (2000 hours) located at position P.
This is the angle between the ships course and the bearing of a prominent landmark
in this case the lighthouse. This angle can be determined by either subtracting from
or adding to the true bearing of the landmark. In gure a, the true bearing of the light-
house is 055T and the ships course is 090T. The relative angle on the bow then is
35. The bearing of the landmark is taken at regular intervals until the angle on the bow
has doubled. At this point, Q, the time of this sighting is again noted as shown in
gure b (over page, right) as 8.30 pm or 2030 hours.
If previously gathered information indicated that the vessel was travelling at
12 knots, then the distance PQ is equal to 6 n mile (the vessel has travelled at
Shore object
O
X
P
0900
Course
intended
True north
Y
59'
25S
3'
4'
5'
6'
7'
8'
9'
1'
2'
Starboard Port
Bow
(front of
vessel)
Stern
12 knots for half an hour). In LPQL, PQL = 110 because the angles on the straight
line are supplementary (add to 180). Also, because angles of a triangle add to 180,
QLP = 35, LPQL is isosceles and so QL = PQ = 6 n mile. So the vessel at Q is
6 n mile from the lighthouse.
An adaptation of the doubling-the-angle-
on-the-bow method is the x-by-four-point
bearing. This method is often used by navi-
gators, and is a convenient way of easily
determining if a vessel is on course. When
the angle on the bow is 45 (commonly
referred to as the four-point bearing) the
time is noted. See the diagram at right.
Fittings previously set up on deck can assist in readily detecting a 45 angle on the
bow. The vessel then continues on course until the angle on the bow is 90, again an
angle that is easily determined. The time of this sighting is again noted. The navigator
can estimate the distance the vessel is at this time from the landmark. Previous chart-
work would have predicted the expected distance from the landmark. Hence, the navi-
gator can determine whether or not the vessel is on course.
P
Ships course
True north L
Lighthouse
2000
0
5
5
T
35 090T
P
Ships course
True north L
Lighthouse
2000
0
5
5
T
35
090T
110 70
Q
2030
Figure a Figure b
L
45
P
40
3

n

m
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a
R Q
b
c In the diagram at right, nd angles a, b and c and length PR.
THINK WRITE
The triangle is isosceles
(given PQ = PR). Hence, a = 40.
a = 40
Calculate b. If a = 40, then
b = 180 40 (since a + b = 180).
b = 180 40
= 140
Calculate c. The sum of three angles in
a triangle add to 180.
a + c + 40 = 180
But a = 40
c = 180 2 40
= 100
It is given that PQ = PR. PR = 3 n mile
1
2
3
4
18
WORKEDExample
A ship is on a course of 010T. At 1100 hours, the navigator notes the bearing of a
lighthouse, L, to be 340T. The vessel is travelling at 24 knots. At 1120 hours the angle on
the bow has doubled.
a Draw a neat diagram representing this information.
b Calculate the angle on the bow at 1100 hours and 1120 hours.
c How far has the vessel travelled between 1100 and 1120 hours?
d How far is the vessel from the lighthouse at 1120 hours?
THINK WRITE
a Draw a line 10 clockwise from vertical
(or true north) to mark the ships course.
a
Towards the base of this line, mark a
point, P, representing the ships position at
1100. From this point, draw a position line
at 340T. Draw a point, L, on land, to
represent the lighthouse. The angle
between the two lines now drawn must be
30.
At 1120 the angle on the bow has doubled,
and therefore will now be 60. Draw a
position line through L and intersecting
the ships course at 60. This will give the
vessels position, Q, at 1120.
b The angle on the bow at 1100 hours is the
angle between the direction of the vessel
and the bearing of the lighthouse; that is,
the angle between 10T and 340T.
b At 1100, the angle on the bow is 30.
At 1120, the angle on the bow has now
doubled to 60.
At 1120, the angle on the bow is 60.
c Calculate distance. We know the speed
and the time, therefore recall that
speed = .
c 24 knots =
Convert time to hours. 1120 1100 = 20 min
= hours
= h
Continued over page
1
Ships course
True north
L
1100
30
60
1120
010T
340T
P
Q
2
3
1
2
1
distance
time
-------------------
distance
time
-------------------
2
20
60
------
1
3
---
19
WORKEDExample
Doubling the angle on the bow
1 In each of the diagrams (a to f) below, nd the following unknowns.
a i x ii y iii z iv AC
b i x ii y iii PQ
c i x ii y iii z iv AB
d i y ii x iii QL iv true bearing of L from P
e i LPR ii PRL iii PLR iv LR
f i angle on bow at 0800 hours, x
ii LRP iii RLP iv RP v RL
a b
THINK WRITE
Rearrange the equation to make distance
the subject.
Distance = speed time
= 24 n mile/h h
= 8 n mile
Find the distance. The vessel has travelled 8 n mile.
d The triangle formed by the three position lines
is isosceles. Hence, the distance between the
1100 and 1120 positions is equal to the
distance between the 1120 position point and
the lighthouse; that is, 8 n mile.
d Distance = 8 n mile
3
1
3
---
4
1. The front of a boat is known as the bow.
2. The angle on the bow is the angle between the boats course and the bearing of
a prominent feature.
3. The doubling-of-the-angle-on-the-bow
method uses the properties of isosceles
triangles triangles which have one pair
of sides equal and base angles equivalent.
When angle a has doubled to 2a, the
distance BC is equal to the distance AB.
C
a
B A
2a
Course
of vessel
remember
5I
WORKED
Example
18
eBookplus eBookplus
Digital doc:
SkillSHEET 5.2
Angle relationships
A
50
3

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x
C
B
y
z
40
x
y
80
RQ = 7 n mile
R
P
Q
c d
e f
2 The gure at right shows the
course (015T) of a vessel
travelling at 12 knots. At
11.15 am the navigator
observes a land feature, L,
on a bearing of 040T. At
11.40 am the angle on the
bow has doubled.
a Determine the angle on
the bow at 11.15 am.
b How far is the vessel
from the feature L at
11.40 am?
3 At 1300 hours, the navigator of a vessel on a course of 080T observes the bearing of a
landmark to be 050T. At 1330 hours the angle on the bow has doubled. The speed of
the vessel is 18 knots.
a Using a ruler and protractor, draw a neat diagram representing this information.
b Calculate the angle on the bow at 1300 and 1330 hours.
A
42
x
C
B
y
z
BC = 11 n mile
50
25
x
y
L
P
Q
Course 020T
PQ = 6.5 n mile
L
P Ships course 090T R
Given: Bearing of L at P is 045T
PR = 10 n mile
L
P
Ships course 350T
R
40
3
3
0
T
0800
x
0830
Given: Speed of vessel = 16 knots
True north
040T
L
P
Q
Course 015T
1140
1115
WORKED
Example
19
c How far has the vessel travelled between sightings of the landmark; that is, from
1.00 pm to 1.30 pm?
d How far is the vessel from the landmark at 1.30 pm?
4 A vessel is on a bearing of 250T travelling at 24 knots. At 6.30 am, a tower is
observed at a bearing of 225T. At 6.50 am the angle on the bow has doubled.
a Use a ruler and protractor to represent this information on a diagram.
b How far is the vessel from the tower at 6.50 am?
c Find the shortest distance the vessel is from the tower as the vessel continues on its
course. (Hint: What is the angle on the bow when the vessel is at this point?)
d At what time is the vessel at the point in c?
e What bearing of the tower would be expected at 7.30 am? (Hint: This can be
answered by using an accurate scale diagram or trigonometric ratios.)
1 What is the minimum number of intersecting position lines required to x the position
of an object?
2 The intersection of three position lines forms a small triangle. What is the triangle
called?
3 What name is given to the line of sight connecting two prominent objects?
4 Name the type of triangle that has two equal sides and two equal base angles.
5 The bow refers to which part of a vessel: front or rear?
6 What is the name of the angle between a boats course and the bearing of a prominent
feature?
7 A vessel covers 63 nautical miles from 10 am to 5 pm. What is its average
speed in knots?
8 How long does it take a vessel to cover 40 n mile if it is travelling at 10 knots?
9 The distance between two points on a chart is transferred to the latitude scale using
dividers. The spread of the dividers shows 124. How far apart are the two points in
nautical miles?
10 How many visible shore objects are required for a running x?
Magnetic variation
Obtain several adjacent 1: 50 000 scale maps of your local area. Explore the
relationships between true north, magnetic north and grid north on these maps. You
may wish to peruse the section in Chapter 6 on topographic maps.
How has magnetic variation in your area changed over the past century? What is
the cause of this?
3
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Dead reckoning
Dead reckoning (or
deduced reckoning or
DR) refers to the
method of calculating a
vessels position from
previously collected
information. It is an
estimate only and does
not involve taking a x
by sighting. It is often
used by navigators
when usual methods of
xing cannot be used;
for example, when a vessel is unable to sight landmarks because of distance from the coast-
line. An estimated position arrived at by dead reckoning is indicated on the chart by a dot
in the centre of a triangle, , to distinguish it from the more accurate x position .
The simplest method of establishing the DR position is to plot on the chart the course
and distance the vessel has followed since the last x position. The DR position is only
an estimate due to factors such as changing winds and currents. The diagram above shows
a x taken at 0800 hours and marked . From previous xes, the speed of the vessel
has been determined at 10 knots. Hence, the DR position at 0830 hours can be determined
and marked . (Distance = time speed = hour 10 knots = 5 n mile.) The dividers
are used to transfer 5 n mile from the latitude scale.
Course
1'
2'
3'
4'
235'S
6
0800
0830
.
.
.
.
1
2
---
The yacht
Escapade is at
point A at
0700 hours as
shown in the
chart, and is
sailing in a true
northerly
direction at
8 knots. Locate
its expected
position at:
a 0730 hours
and
b 0745 hours.
Continued over page
R
0700
0800
0820
Q
A
C
D
14900'E 5' 14910'E
2000'S
2005'S
2010'S True
north
20
WORKEDExample
Dead reckoning
Use the chart in Worked example 20 on page 291 to answer questions 1 to 3.
1 A vessel is at Q at 0930 hours and is travelling at 6 knots on a true bearing of
060.
a Plot this course using a protractor.
b State the latitude and longitude of Q.
c Plot the estimated position of the vessel at:
i 0950 hours ii 1010 hours iii 1030 hours.
d State the position of the vessel for the times given in c above.
2 A vessel travelling at 7 knots is at R at 1300 hours. Plot and state its estimated position
at 1400 hours if it follows a true bearing course of:
a 180 b 270 c 225 d 260.
THINK WRITE
a The course of the vessel is drawn as a
line directly upwards from point A.
The vessel then moves a distance of
8 0.5 n mile (speed time) or 4 n mile
in the next 30 minutes. This position is
then plotted by transferring 4 n mile
from the latitude scale.
This expected position is marked in the
triangle.
b At 0745 hours, Escapade has travelled
for hour or 0.75 hour.
At 8 knots, it has covered
8 0.75 n mile, or 6 n mile, since
0700 hours.
Again, the position is marked in a
triangle.
a
b
1
2
3
1
45
60
------
2
3
0700
A
0745
0730
1. Dead reckoning or deduced reckoning is a method of estimating the position of
a vessel.
2. It does not involve a x by sighting; rather, it uses previously collected
information about speed and course (direction) of the vessel.
remember
5J
WORKED
Example
20
3 Use the xes determined by a vessel at C and D to determine:
a the distance travelled from 0800 to 0820 hours
b the speed of the vessel
c the DR position (latitude and longitude) of the vessel at:
i 0840 hours ii 0900 hours.
The lighthouse and navigation
Throughout the world, all coastlines that can be navigated are lined with lighthouses
and lights. There are three main categories of lights:
1. the long range ocean lights, commonly known as lighthouses
2. coastal lights, shorter range lights used for indicating harbours and rivers
3. harbour lights, including buoys and beacons, and indicating channels and hazards.
Most lighthouses have a lens that concentrates the light. This concentrated beam is
then rotated at a set speed. The rotating beam can often be seen as a are or loom
across the sky, even though the light source is below the horizon. A vessel that has been
well off the coast must be able to distinguish one lighthouse from another to ascertain
its correct position. Consequently, lighthouses ash at different rates.
A light in which periods of light are shorter than dark periods is marked F1 (for
ashing) on a chart. If the periods of light exceed the period of darkness, it is marked
OCC (occulting).
A lighthouse emitting two short ashes of light followed by a long period of dark-
ness is marked F1 (2). Three long ashes of light followed by a short dark period is
marked OCC (3).
The length of the cycle in seconds is also given, followed by the height of the light
above sea level and its range in nautical miles. The chart below shows the lighthouse
at Point Lookout, North Stradbroke Island, marked on a chart as F1 (3) 15 s 78 m
10 M. This means that the light gives 3 short ashes and a long period of darkness
in each 15-second cycle. It is 78 m above mean low water mark and has a range of
10 nautical miles. Because no light anywhere in the region ashes in a similar fashion,
even an off-course navigator could readily establish position if charts were available.
True
North
Fl(3) 15s 78m 10M
Flat rock
Shag rock
Boat rock
POINT LOOKOUT
Cylinder
Beach
Frenchman
Bay
Lighthouses offer a very accurate x by using a method
known as the extreme-range x. A navigator travelling
along the coast will notice the loom or aring
beam from the lighthouse well before the light
itself is seen. As soon as the light is seen on
the horizon, the time is noted and the bearing of
the lighthouse is taken. Navigation tables can
then be used to give the distance from the
lighthouse. Trigonometric calculation using
the tangent ratio can be used as the vessel
nears the lighthouse. A sextant is used to
determine the angle of elevation of the light
above the horizon.
Find the unknowns in a to d below.
THINK WRITE
a Recall that tangent = .
H is opposite 7, and 82 m is the
adjacent side. So tan 7 = .
a tan 7 =
Rearrange to make H the subject. H = 82 tan 7
= 10.1 m
b The 65-m side is opposite 7.4 and
D is the adjacent side.
b tan 7.4 =
Rearrange the equation to make D
the subject.
D =
= 500 m
c Note that the units of length are
different. Convert 2.4 n mile to
metres by multiplying by 1852.
c 2.4 n mile = 2.4 1852 m
= 4445 m
Calculate tan e; opposite is 120 m,
adjacent is 4445 m.
tan e =
= 0.027
Calculate e. e = 1.55
Convert to degrees and minutes.
Recall that 1 = 60,
so 0.55 = 0.55 60 = 33.
e = 133
2.4 n mile
e
120 m
D
7.4
65 m
H
7
82 m
L
95 m
2.4
a b c d
1
opposite
adjacent
--------------------
H
82
------
H
82
------
2
1
65
D
------
2
65
tan 7.4
-------------------
1
2
120
4445
------------
3
4
21
WORKEDExample
THINK WRITE
d The 95-m side is opposite; L is
adjacent, so tan 2.4 = .
d tan 2.4 =
Rearrange the equation to make L
the subject.
L =
Calculate L. L = 2267 m
Convert to nautical miles. Recall that
1 n mile = 1852 m so
L = n mile.
L = 1.22 n mile
1
95
L
------
95
L
------
2
95
tan 2.4
-------------------
3
4
2267
1852
------------
A lighthouse is marked on a map as F1 (3) 15 s 78 m 10 M. A ships navigator, using a
sextant, measures its angle of elevation as 130.
a Describe the ashing pattern expected.
b How high above sea level is the lighthouse, and what is the range of the light
emitted by it?
c How far is the vessel from the lighthouse? Give your answer in metres and nautical miles.
d What angle of elevation is expected if the vessel is 0.5 n mile from the light?
Continued over page
THINK WRITE
a F1 means short ashes of light then a
long period of darkness. The symbol (3)
gives the number of light ashes.
a There are 3 short ashes of light, then a long
period of darkness.
b 78 m refers to height above sea level
in metres.
b Height = 78 m
10 M gives the range of light in
n mile.
Range = 10 n mile
c Draw triangle PLH.
(a) P represents the vessels
position.
(b) LH is the height of the light; that
is, 78 m.
(c) The angle of elevation (HPL)
= 130 = 1.5.
(d) HP is the adjacent side and 78 m
is the opposite.
c
1
2
1
78 m
1.5
P H
L
22
WORKEDExample
THINK WRITE
The tangent ratio relates LH and PH. tan 1.5 =
Make HP the subject and calculate
the distance.
HP =
= 2979 m
Now convert to n mile by dividing
by 1852.
HP =
HP = 1.61 n mile
d Draw a diagram as shown.
(a) Mark the unknown angle of
elevation as e.
(b) The opposite side is 78 m.
(c) The adjacent side is 0.5 n mile
(or 0.5 1852 = 926 m).
d
0.5 n mile = 0.5 1852 m
= 926 m
The tangent ratio relates e, LH and PH. tan e =
Find e. e = 4.8
2
78
HP
-------
3
78
tan 1.5
-------------------
4
2979
1852
------------
1
e
78 m
0.5 n mile
P H
L
2
78
926
---------
3
1. Lighthouse lights are either ashing (F1) or occulting (OCC). A ashing light
gives a number of short ashes of light followed by a long period of darkness.
A lighthouse marked OCC refers to a light which gives long ashes of light
followed by a short period of darkness.
2. F1 (2) 14 s 108 m 13 M describes a lighthouse that has 2 short ashes of light
followed by a long period of darkness every 14 seconds. It is 108 metres above
sea level and has a range of 13 nautical miles.
3. The tangent ratio of an angle = .
4. 1 = 60; that is, 1 degree = 60 minutes.
5. The angle of elevation of a lighthouse is the angle measured from the
horizontal upwards to the light.
6. 1 nautical mile = 1852 metres.
opposite side
adjacent side
-------------------------------
remember
The lighthouse and navigation
1 Find the unknowns in the diagrams
at right.
a AB in m b XY in m
c e (in degrees and minutes)
d PQ in n mile
2 The Cape Moreton lighthouse is described on the chart as F1 (4) 20 s 122 m 27 M.
From the trawler Seaspray, the angle of elevation of this lighthouse is 215.
a What is the ashing pattern of this lighthouse?
b Draw a right-angled triangle showing the height of the lighthouse and the angle of
elevation given.
c How far is the vessel from the lighthouse when the sighting is made?
3 At 2100 hours the navigator on a vessel heading south notes that the angle of elevation
of a lighthouse is 120 on a bearing of 340T. The lighthouse is marked F1 (2) 12 s
120 m 15 M (see gure below).
a Describe the light pattern.
b Use a protractor to draw the position line from the lighthouse.
c Calculate the distance from the lighthouse.
d Fix the vessels position at 2100 hours.
e If the vessel is moving at 10 knots, plot its expected position at 2130 hours.
f How far is the vessel from the lighthouse at 2130 hours?
g Predict the angle of elevation of the lighthouse at:
i 2130 hours ii 2148 hours.
4 At 1300 hours a vessels
navigator notes the bearing
of the lighthouse in the
gure shown to be 270T.
The vessel is on a course
180T. The navigator notes
the angle of elevation of
the lighthouse to be 1.
a Plot the line of sight
to the lighthouse at
1300 hours.
b Calculate the distance
from the lighthouse if it
is 120 m above sea
level. Plot the vessels
position at 1300 hours.
c If the vessel is moving at 8 knots, plot the position at 1330 hours.
d What is the expected angle of elevation of the lighthouse at 1330 hours?
5K
WORKED
Example
21
100 m
3
X Y
Z
120 m
B
A
5
93 m
e
1.6 n mile
2
87 m
P
Q
R
a b
d
c
WORKED
Example
22
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SkillSHEET 5.3
Sides of a right-angled
triangle
F1(2) 12s 120m 15M
2910'S
29S
3'
4'
295'S
6'
7'
8'
9'
1'
2'
True
North
Lets go cruising
The ability to rapidly determine accurate position at sea is an essential skill
required by seafarers. In this section, we shall explore position xing using GPS
devices and chart work.
Global Positioning System (GPS)
It is now possible to purchase a relatively inexpensive and portable device
(hand-held if required) which can accurately determine ones position in the
air, on sea or on land. The techniques for xing position that we have exam-
ined in earlier sections all depend upon the visibility of coastal objects;
these new devices are superior as they operate in all weather conditions,
24 hours a day.
The Global Positioning System (or GPS), is a navigation system that is
operated by the United States Government. Twenty-four satellites orbit the
Earth every twelve hours. The satellites are positioned so that a GPS
receiver is usually in range of six or more of them. The GPS receiver then
determines the position on Earth by decoding information picked up from
the satellites.
Until 1 May 2000, civilian users were exposed to an error that was
deliberately added to all received signals. This error was known as
selective availability and often
caused position errors of approxi-
mately 50 metres. Position in terms
of latitude and longitude can now
be described with an accuracy of
2 to 5 metres on the more sophisti-
cated devices. The illustrations on
page 299 show a number of devices
used for determining position. They
can also provide altitude, absolute
ground speed (unaffected by wind
and currents) and deviation from a
planned course. They are also
capable of converting a true bearing
to a corresponding magnetic bearing
and vice versa. They are rapidly
becoming an essential item for the
safety conscious navigator.
Obtaining a speed boat licence
What steps are required to legally operate a speed boat in Queensland? Someone in
your class may be able to speak to you about this.
A group may choose to obtain a licence as you study this unit. Many centres
along our coast offer short courses.
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These sh were caught on an offshore reef using a GPS.
GPS
This activity requires a small hand-held GPS and operating manual. These devices
are now inexpensive. If your school does not have one, you may be able to have a
student bring one to school and describe its operation to the class.
Finding your way back to a previous location
Move outside the classroom away from buildings and stop. Switch on the GPS and
observe the screen as it depicts the satellites that it is locking on to.
1 Obtain your position. Note the degree of accuracy that is provided by the
latitude and longitude description. Store this position in the GPS memory as
Waypoint 1 (WP 001).
2 Walk approximately 50 metres from your rst point, stop, and store this new
position in the memory (WP 002). Continue moving to new locations and
storing new positions as waypoints.
3 Now highlight your rst stored position on the screen, Waypoint 1. Use the
GPS to see if you can return to this (your original) position. Use the GPS
device to return to your other stored positions.
Finding a hidden object
To conduct this activity, rst break the class into two groups. One group hides an
object and records its position in the GPS. The second group, using the stored
waypoint, then attempts to locate the object. The groups swap roles, and repeat the
activity. The times taken to recover the hidden object are recorded. This process
can be repeated four or ve times, and the group with the lowest average declared
the winner.
Orienteering
Orienteering is a physically active and enjoyable pastime involving practical land
navigation using a map and compass. A class activity is described in Chapter 6 on
page 372.
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Cruising your local area practical
navigation
The activities described below can form the basis of an exciting and educational
excursion. Assessment items can be drafted around the activities conducted before
as well as during the trip. Many charter boat operators are more than happy to
assist with the teaching of practical navigation.
Materials
The materials that are required are:
1. a laminated chart of an area of coastline close to your school
2. a hand bearing compass
3. a parallel ruler
4. chart pencils
5. a portable GPS device (the vessel on which you are travelling may have one)
6. a camera to record the dolphins, whales, seagulls and boats under sail!
7. a large charter boat to carry your Maths A class.
Before the trip
Study the chart of your local coastline closely.
1 What scale has been used to produce this chart?
2 Look at the compass rose in the area closest to where you will conduct your
excursion. What is the magnetic variation for this year?
3 Study the shoreline closely. Which prominent features might be observed from
a vessel cruising within a few nautical miles of your coastline? Give the
position of each prominent feature by stating latitude and longitude.
4 Look closely at the river, harbour or ramp from which you will depart. Note
any beacons present that you are likely to encounter. Use the legend at the base
of the chart to decipher any unfamiliar symbols. What is the depth of water in
the region of your planned excursion? Again the legend gives information
regarding soundings.
5 Choose any two prominent locations on your chart. Estimate the distance
between them in kilometres and nautical miles. Remember to use the latitude
scale to determine distance. Repeat this process for other pairs of locations.
6 Determine the true and magnetic bearing of a number of prominent features
from your departure point.
During the voyage
A trip of only 3 hours duration could include the following activities.
1 As you depart, note the presence of any beacons that you expected to see when
you studied the chart.
2 Stop the vessel soon after departing the harbour.
a Use the compass to determine north. Which way to east, west and south?
b Locate the prominent features you expected to nd prior to the trip. Use the
hand bearing compass to give the true and magnetic bearing of each. How
do these values compare with your expected bearings?
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3 Cruise out for a couple of nautical miles and stop the vessel.
a Quickly take the bearings of three prominent objects using the hand
bearing compass. You could use towers, aerials or beacons as long as
the features you have chosen are shown on your chart. Convert these
compass bearings to true bearings using the appropriate magnetic
variation.
b Use the parallel rule to pinpoint your position on the chart. A fairly small
triangle ought to result. It is best to undertake this task while the vessel is
still. (Ask the skipper to keep the boat steady until all groups have recorded
the three bearings.) What would happen if the boat drifted between each of
your sightings?
c Now state your current position in terms of latitude and longitude. Check
the accuracy of your work using either a portable GPS device or one that
the skipper of the boat has at the wheel.
d Just as you depart this position, note the time and write this on your chart
beside the cocked hat.
4 Ask the skipper to now move directly at constant speed to another location,
perhaps one or two nautical miles away. The skipper will later tell you the
speed he was cruising at, using his instruments at the wheel, and the course he
followed. Youre going to calculate both rst, and then check to see if the
skipper is correct!
a As soon as the boat stops, record the time.
b Again, have the vessel still as you record the compass bearings of three
features. Convert these bearings to true and determine your new location on
the chart. Check your position with the GPS reading.
c Now calculate the distance in nautical miles between these two locations
and the time taken to travel between them. Determine the speed of the
vessel in knots.
d Use the chart to also nd the true and compass course of the boat.
e Ask the skipper for the actual speed and course followed to check your
work. Good luck!
Some practical considerations
1 If your class does not have this equipment, you may be able to use
materials used by the Marine Studies classes at your school or a nearby
school.
2 Charts suitable for this excursion are produced by the Marine Division of
Queensland Transport, Brisbane.
3 Charts, parallel rulers, chart pencils, course plotters and many books, videos
and CDs related to navigation are available from Boat Books Australia.
To contact Boat Books Australia or to nd out more about their products, use
the Boat Book weblink in your eBookPLUS. An extensive catalog is available
free of charge.
4 Group sizes of 3 to 4 work well for the above activities. Rotate activities
at each site so that each member uses the compass and plots a line of
sight.
Lets go
cruising
This exercise uses the chart of a region of
Moreton Bay, Brisbane on pages 304 and 305.
1 Study the compass rose on the chart.
What is the magnetic variation in the region
when this chart was produced:
a to the nearest minute?
b to the nearest degree?
2 State the position of:
a South West Rocks on Peel Island
b the wreck Platypus on Peel Island
c Lake Kounpee on North Stradbroke Island
(at the right of the map)
d Cleveland Point on the mainland (base of
lighthouse)
e the rocks to the north of Potts Point on Macleay Island (at the bottom of the chart).
3 Name the feature at:
a (2734S, 15320E)
b (2730S, 15322.4E)
c (2734.4S, 15320.3E)
d (2728.5S, 15324.3E).
4 The Kelly is at Blaksley Anchorage on North Stradbroke Island (the land mass to the
right of the map). (Use the anchor symbol on the map for this reference point.)
a What true bearing is expected of:
i South West Rocks on Peel Island?
ii The Bluff on Peel Island?
iii the township of Dunwich on North Stradbroke Island?
iv Potts Point on Macleay Island (to the west, and about halfway to the
mainland)?
b What compass bearing is expected of each of these locations?
c Estimate the distance in nautical miles from Blaksley Anchorage to each of these
four locations.
5 The abbreviation F1 G 3 s describes a light, green in colour, which ashes every
3 seconds. R and Y indicate red and yellow lights.
a Describe the light indicated by:
i F1 Y 2.5 s ii F1 R 4 s iii F1 G 6 s.
b Why are the lights of different colours and ashing rates?
5L
6 A boat departs Horseshoe Bay (on Peel Island) at 10.25 am and heads directly to
Blaksley Anchorage on North Stradbroke Island.
a How far is this in nautical miles? (Use the anchor symbol at each location.)
b On what true and magnetic bearing would it travel?
c How long would this trip take at 9 knots?
d Calculate the ETA.
e On this trip, immediately after departure, rain reduces visibility considerably and a
strong wind blows from the south-west. Can you suggest a possible hazard on this
trip?
7 A large cruiser departs Norfolk Beach on Coochiemudlo Island and travels to Blaksley
Anchorage, then to Dunwich. It then visits Horseshoe Bay on Peel Island before
returning to Norfolk Beach. The vessel cruises at 8 knots. How much fuel is consumed
if it uses 85 litres per hour at this speed?
8 Mary is shing at a spot in Moreton Bay. She notes that the compass bearing of the
light F1 G 2.5 s at South West Rocks on Peel Island is 340 and that of the centre of
Coochiemudlo Island is 216.
a Convert each bearing to a true bearing.
b Locate the position where Mary is shing.
Cassim Island
Oyster Point
Empire Point
Cleveland Point
Mooroondu Point
Wellington Point
Section of Moreton Bay (reproduced from Queensland Transport (Maritime Division) Boating Safety Chart,
Number MB8, published June 2000 this reproduction not to be used for navigation).
Coochiemudlo
Island
Sandy Island
d
Bird Island
Hospital Point
Polka Point
Peel Island
Goat Island
Point
Halloran
Cucumber Point
The Bluff
Potts Point
(Coondooroopa)
Victoria
Point
Air navigation
There are many similarities between air and sea navigation. Given that a pilot is certain
of the starting position, and distance travelled is known, the position at any time can be
easily determined.
Latitude and longitude, as previously described, is the usual method a pilot uses to
specify position when preparing a ight plan. In the air, however, the position of an air-
craft could be specied by:
1. the description of a landmark or feature below (for example over the Gateway
Bridge, or over the Goondoola Homestead)
2. by range (or distance) and bearing from a radio beacon or landmark (for example
10 nautical miles on a bearing of 310T from St George).
Many maps drawn to varying scales are used by air navigators. The World Aero-
nautical Chart (WAC) Series are drawn to a 1 : 1 000 000 scale (see the map on
page 307). These charts contain topographical data including rivers, lakes, moun-
tains and coastlines; and cultural information such as towns, roads and railway
lines. These maps are useful for visual en route navigation when the pilot is well
away from busy aerodromes. (Aeronautical information concerning restricted air-
space around major terminals is found in the Visual Terminal Chart (VTR) Series
of scale 1: 250 000.)
The map on page 307 shows a section of the Brisbane WAC. Note that shading is used
to give a 3-dimensional relief effect, with the highest regions in the darkest shades. Spot
elevations or heights above sea level are also given at many locations on the chart. Also,
the highest point in each 30-minute by 30-minute square is marked in large bold type.
For example Mt Kiangarow (3759 feet) is the highest point in the square containing
Kingaroy, and Devils Mountain (264S, 15226S) is 1486 feet above sea level.
Isogonals (lines joining places of equal magnetic variation) are also shown on the WAC
by dashed lines drawn across the maps. The map shows an isogonal with 10 east variation.
1
2
---
Copyright Commonwealth of Australia Geoscience Australia
15130' 15230'
2630'
26S
2530'
152
Air navigation
Use the map on page 307 to answer the following.
1 Give the latitude and longitude of:
a Murgon b Nanango c Gympie d Kingaroy.
2 Name the town or feature at:
a (263S, 1523E) b (2615S, 15143E) c (2607S, 15137E).
3 Give the height of the highest point in the 30 30 square containing:
a Murgon b Nanango c Gympie.
4 Aerodromes are marked if they have passenger facilities, or if they do not have pas-
senger facilities but are frequently used.
A pilot leaves Kingaroy airport. State the true and compass bearing expected if she is
heading to:
a Gayndah airport b Murgon airport.
5 The Flying Doctor departs Gayndah on a bearing of 160T.
a Convert this to a compass bearing.
b Describe the features that would be observed by the pilot on this course.
Navigation
Consider the problems that could arise when attempting to navigate:
a small plane by air
across land
at sea within sight of the coast
at sea beyond sight of land.
Why is a GPS such an important aid to modern navigation?
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Earth geometry
Any geometric plane passing through the centre of a sphere intersects the surface of
the sphere to form circles known as great circles.
The equator is a great circle.
Great circles passing through the North and South Poles consist of two semicircles
called meridians or lines of longitude.
The line of longitude passing through Greenwich is the prime meridian
(0 longitude).
Lines of latitude are circles on the surface of the Earth parallel to the equator,
assigned a number depending on the number of degrees north or south of the
equator.
To x a position, state latitude then longitude (for example, 30N, 50W).
1 degree of movement along a meridian line = 111.2 km.
1 degree = 60 minutes.
Nautical mile and knot
1 nautical mile is the length of the arc of a great circle which subtends an angle of
1 minute (1) at the centre of the Earth.
1 nautical mile = 1852 metres
1 knot = 1 nautical mile per hour
Speed =
Compasses and bearings
Magnetic compasses point to the magnetic north pole, the position of which varies
slightly each year.
The conversion from true bearing to compass bearing can be recalled by:
(a) Variation east compass least (subtract the magnetic variation from the true
bearing to get the compass bearing).
(b) Variation west compass best (add the magnetic variation to the true bearing
to get the compass bearing).
The bearing of B from A is known as the reverse bearing of A from B. These
bearings differ by 180.
Determining position by navigation
The intersection of two or more position lines marked on a chart can be used to
determine a vessels position.
The intersection of three position lines forms a small triangle known as a
cocked hat.
If an observer notes that two prominent shore objects are in line, then the observer
must be on the line of sight connecting these two objects. This line is called the
transit line.
A position x using transit lines is known as a transit x.
A two-transit x uses the intersection of two transit lines to determine position.
The front of the vessel is called the bow.
summary
distance
time
-------------------
The angle on the bow is the angle between the boats course and the bearing of a
prominent feature.
The doubling-of-the-angle-on-the-bow method uses the properties of isosceles
triangles triangles which have one pair of sides equal and base angles equivalent.
Dead reckoning or deduced reckoning (DR) is a method of estimating position. It
does not involve a x by sighting. Rather, it uses previously collected information
about speed and course direction of the vessel.
Lighthouses are either ashing (Fl) or occulting (OCC). A ashing light gives a
number of short ashes of light followed by a long period of darkness. A lighthouse
marked OCC refers to a light which gives long ashes of light followed by a short
period of darkness.
Tangent ratio of an angle =
The angle of elevation of a lighthouse is the angle measured from the horizontal
upwards to the light.
opposite side
adjacent side
-------------------------------
1 The diagram at right represents
the Earth.
a Give the position of A, B, C
and D.
b Name 3 meridians.
c Name a point on the equator.
d If P is the centre of the Earth,
give 4 radii.
2 Use the map of the Whitsunday
Group on page 257 to give the
position of:
a Dolphin Point on Hayman
Island
b the entrance to Nara Inlet.
3 Find the shortest distance in
nautical miles from the North Pole
to:
a the equator b the South Pole
c (20N, 150E) d (42S, 84W).
4 Find the shortest distance in nautical miles from:
a (2N, 100E) to (20N, 100E) b (52S, 170W) to (37N, 170W).
5 Convert to minutes:
a 6 b 18.5 c 2815 d 5737.4.
6 Find the distance from Woodlark Island (9S, 153E) to the equator in nautical miles and
kilometres.
7 Find the unknowns.
8 The Red Devil departs (2722S, 15342E) and heads north to (2546S, 15342E)
averaging 15 knots. Find the time of the trip.
Speed (knots) Distance (n miles) Time
a 18 3 hours
b 1453 4 days 13 hours
145 c 3.6 hours
140 d 1 hour 25 minutes
52 2600 e hours
96 24 f minutes
CHAPTER
review
5A
N
S
E W
Latitude
Longitude
A
B
C
E
G
F
D
H
I
90
100
110
120
130
140
150
160
170 180
80
70
60
50
40
30 20 10 0
10
20
30
40
50
60
70
80
10
20
30
40
50
20
40
60
60
P P
5B
5C
5C
5C
5C
5C
5C
9 Sue departs her homestead in her ultralight, Skyfox, on a latitude of 2752S at 7.25 am, and
ies due north to an airport on a latitude of 2112S. She refuels and has lunch at the airport,
being grounded for a total of 1 hour and 20 minutes, before returning to the homestead. Her
plane cruises at 80 knots.
a How far (in nautical miles) is the homestead from the airport?
b On what true bearing should Sue y to return to the homestead?
c How long does it take Sue to y from the homestead to the airport?
d What is her estimated time of return to the homestead?
10 Find the unknown values in the table below.
11 The bearing of Skull Rock from Pirate Cove is 106T. What is the bearing of Pirate Cove
from Skull Rock? Include a sketch.
12 At 12.30 pm, the yacht Shotover records the bearings of a renery tower (090T) and a large
pine tree (060T). At 12.50 pm the bearings are tower (150T) and pine tree (085T)
(see chart below).
a Use this information to x the vessels position at these times.
b How far has Shotover travelled in this time?
c Calculate the speed in knots.
d On what true bearing is Shotover travelling?
13 In the diagram at right, nd angles a, b, c and length PR.
True course 120T 245T 318T d
Variation 6E 8W c 10E
Compass course a b 324C 196C
5C
5D
5E
5E
Large
pine tree
40S
3'
4'
5'
6'
7'
8'
1'
2'
Refinery
tower
Latitude
scale
True north
5J
c
a b
P
Q
R
7
.
4

n

m
i
l
e
55
14 The gure at right shows the path of a
vessel on a course of 348T. At 7.00 am,
the vessel sights a large tower on a cliff
on a bearing of 330T.
At 7.30 am the angle on the bow has
doubled. The vessel is travelling at 26 knots.
Find:
a the angle on the bow at 7.00 am
b LZA
c the distance travelled from 7.00 am to
7.30 am; that is, YZ
d the distance from the vessel to the tower
at 7.30 am.
15 At 0800 hours, the cruiser Marlin King, on a course 020T, notes the bearing of Camel Rock
to be 070T. Marlin King is travelling at 18 knots. At 0840 hours the angle on the bow has
doubled.
a Draw a neat diagram representing this information.
b Calculate the angle on the bow at 0800 hours and 0840 hours.
c How far has the Marlin King travelled between these two sightings of Camel Rock?
d How far is the cruiser from Camel Rock at 0840 hours?
16 Find the unknowns in the triangles below.
a b
c d
17 A ship sights a lighthouse marked on a chart as Fl (3) 16 s 130 m 16 M.
a Describe the ashing pattern expected.
b How high is the lighthouse above sea level?
c What is the range of the light?
d A navigator observes from a porthole at sea level that the angle of elevation of this
lighthouse is 3. How far from the lighthouse is the ship?
18 Use the chart on page 291 to answer this question. A vessel is at point A at 7.00 am.
a How far is it from R?
b On what true bearing should the vessel travel to arrive at R?
c The vessel departs A at 7.00 am heading for R at 6 knots. Estimate its ETA at R.
19 In the chart on page 291 Escapade sails from R to Q at 18 knots, departing at 10.50 am.
a On what true bearing does it sail?
b How far is R from Q?
c Plot the position of Escapade at 11.20 am.
d What is the ETA (estimated time of arrival) at point Q?
Ships course 348T
0730
Z
330T
Y
0700
A
L
x
5J
5J
5L
H
53 m
6
38 m
L
30
87 m
1.6 n mile
e
142 m
D
1.4
5L
5K
5K
Digital doc:
Test Yourself
Chapter 5
eBookplus eBookplus
Digital doc
SkillSHEET 5.1: Practise working with angle
measures in degrees and minutes (page 253)
Digital doc
SkillSHEET 5.1: Practise working with angle
measures in degrees and minutes (page 262)
Digital doc
WorkSHEET 5.1: Calculate distances on great
circles and write angles in degrees, minutes and
seconds (page 272)
Tutorial
Int-0472: Watch how to calculate compass and
true bearings (page 271)
Digital doc
SkillSHEET 5.2: Practise angle relationships in
triangles and on straight lines (page 288)
Digital doc
SkillSHEET 5.3: Practise identifying sides of a
right-angled triangle with respect to the given angle
(page 297)
Digital doc
WorkSHEET 5.2: Calculate bearings and distances
using trigonometry and speeds travelled (page 308)
Digital doc
5A Review of Earth geometry
5C The nautical mile and the knot
5E Compass bearings and reverse bearings
WE13
5I Doubling the angle on the bow
5K The lighthouse and navigation
5M Air navigation
Chapter review
www.jacplus.com.au
syllabus
reference
Elective topic
Maps and compasses
land measurement
In this
chapter
6A Perimeters and areas of
triangles
6B Perimeters and areas of
polygons
6C Surveying on level ground
without obstacles
6D Surveying around obstacles
6E Plane table surveying:
intersection or triangulation
6F Plane table surveying:
radiation and traversing
6G Levelling: vertical
measurements in relation to a
datum
6H Topographic maps
6I Contour maps
6J Cadastral maps and site plans
6K Orienteering

6

Land
measurement


316


Introduction

The above scenario is extremely
common. Land boundaries must be
clearly established. Areas of allotments
must also be accurately known.
How can the area of an irregularly
shaped lot of land be determined?
How can scale diagrams of large
areas be drawn?
How do we interpret maps?
This unit illustrates a variety of
simple methods for conducting surveys
and land measurements that can be
employed using readily available mat-
erials. It also includes many investi-
gations that focus on the use of
modern technology incorporating the
operation of the theodolite, laser dis-
tance measuring devices, GPS, and
perimeter and area calculation pro-
grams.
Scenarios like the one above are
only part of a wide range of situations
that require the measurement of boun-
daries and areas of land.
Greg and Margaret have always wanted to live close to the city. They inspect a
small, elevated, vacant block of land in an established area. It is between two
quite old houses. Their ideal home plan is a spacious split-level dwelling that they
expect will cover much of the block. They engage an architect, Sally, who meets
Greg and Margaret on the block to discuss design features that would suit this
allotment.
Well, Sally, what do you think of this? Will we manage to t our dream home
on it? Greg asks enthusiastically.
Lovely breezes and views, replies Sally as she approaches the old fence separ-
ating the block from the neighbours. Yes, what you want should t in here just
nicely . . . provided . . .
Provided what? Greg looks startled.
Well, continues Sally, does this fence follow the exact boundary of your
block? Youll need to know exactly what youre buying.
We hope so! How can we nd out? asks Margaret.
Time for a surveyor! replies Sally.


C h a p t e r 6 L a n d m e a s u r e m e n t

317

1

Give four metric units of length.

2

What name is given to the distance around the boundary of a shape?

3

Calculate the perimeter of the following shapes.

a b
c d e
f g
4

Give a formula for the area of:

a

a square of side length

l

b

a rectangle of length

l

and width

w

c

a circle of radius

r

d

a triangle of base

b

and perpendicular height

h

e

a parallelogram of base

l

and perpendicular height

h

.

5

Convert each of the following quantities to the units indicated.

a

15 mm

cm

b

18 cm

m

c

123m

cm

d

0.68 km

m

e

12.5 km

m

6

Calculate the area of the gures below.

a b c
d e
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Spreadsheet
063 Perimeter and area
6 cm 12 m
3 m
5.2 m
3.2 m
6.8 m
2 m
C
14 m
4 m
10 m
6 m
5 m
r = 3.6 m 28.3 m
15.4 m
8.2 m
12.6 m
18.4 m
10.9 m
5.2 m
12.7 m
2 m
3 m
A B
AB = 10 m


318


7

Evaluate, using your calculator:

a

sin 70

b

cos 15

c

tan 18.

8

State Pythagoras theorem for the right-angled triangle shown
at right.

9

Find the length of the remaining side in the triangles below.

a b c
10

Copy the diagrams below and label the sides as opposite, adjacent or hypotenuse with
respect to the marked angle.

a b c
11

Dene the sine, cosine and tangent ratios in terms of the hypotenuse, and the adjacent
and opposite sides.

12

In each of the following, nd the length of the side marked with a pronumeral, correct
to one decimal place.

a b c

Perimeters and areas of triangles

It is essential that surveyors accurately measure land area. The triangle is a gure regu-
larly employed in surveying techniques and calculations. You are already familiar with
determining the area of a triangle using its base and perpendicular height. Other
methods will now be described.

Finding area using Pythagoras theorem

The perpendicular height of a triangle can sometimes be determined using Pythagoras
theorem. This height can then be used to calculate the area of the triangle.
b
c
a
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SkillSHEET 6.1
Pythagoras theorem
Spreadsheet
054 Introducing
the trig ratios
3 cm
4 cm
s
10 cm
6 cm
s
12.6 m
8.2 m
s
23
h
16 cm
18
p
25 m
37
108 m
t


C h a p t e r 6 L a n d m e a s u r e m e n t

319

Finding area using the sine ratio

The derivation of this rule is as follows:
The sides of the triangle opposite vertices
A, B and C have been labelled

a

,

b

and

c

.
Area of

L

ABC

=

base

perpendicular height

=

b

h

In

L

DBC, sin

C

=

where

C

is the angle at the vertex C.
sin

C

=

Therefore,

h

=

a

sin

C.

Substituting this value for

h

into the area formula above, we obtain:

Area of

L

ABC

=

a

b

sin

C
Find the area of the triangle shown.
THINK WRITE
An altitude can be constructed which
will bisect the base.
Pythagoras theorem can be used to
nd the perpendicular height.
15
2
= h
2
+ 13
2
225 = h
2
+ 169
h
2
= 225 169
h
2
= 56
h =
h = 7.48 m
The area can now be determined using
area = base perpendicular height.
Area = base perp. height
= 26 7.48
= 97.3 m
2
26 m
15 m
15 m
1
13 m
15 m
15 m
13 m
h
2
56
3
1
2
---
1
2
---
1
2
---
1
WORKEDExample
B
C
D
A
h
a
c
b
1
2
---
1
2
---
opposite side
hypotenuse
-------------------------------
h
a
---
1
2
---


320


By constructing perpendiculars to the other two sides it is possible to show that:
area

L

ABC

=

bc

sin

A

and area

L

ABC

=

ac

sin

B.

The rule can be recalled as: the area of any triangle is

side 1

side 2

sin (angle between sides 1 and 2).

Finding area using Herons formula

Herons formula (sometimes also referred to as Heros formula) is represented by the
equation:
Area

=

where

a

,

b

and

c are the lengths of the 3 sides of a triangle and S is the semi-perimeter
and is calculated by S = (a + b + c).
1
2
---
1
2
---
1
2
---
Find the area of the triangles given below.
a b
THINK WRITE
a The area formula involving sine
should be used as we have two sides
and an included angle.
a Area = ab sin C
Substitute the values into the
formula and solve.
Area = 7 cm 13 cm sin 70
Area = 42.8 cm
2
b The area formula involving sine
should be used as we have two sides
and an included angle.
b Area = ab sin C
Substitute values and solve. Area = 8 m 14.6 m sin 123
Area = 49.0 m
2
7 cm
13 cm
70
8 m
14.6 m
123
1
1
2
---
2
1
2
---
1
1
2
---
2
1
2
---
2
WORKEDExample
S S a ( ) S b ( ) S c ( )
1
2
---
C h a p t e r 6 L a n d m e a s u r e m e n t 321
Perimeters and areas of
triangles
1 Use Pythagoras theorem to nd the perpendicular heights, h, in the following.
a b c
2 Find the areas of the triangles shown in question 1.
Find the area of the triangle with sides 8, 10 and 12 m.
THINK WRITE
Because three sides are given, use
Herons formula. The semi-perimeter is
to be found rst.
S = (8 + 10 + 12)
= 30 m
= 15 m
The values of S, a, b and c are
substituted into Herons formula.
Area =
=
=
=
= 39.7 m
2
8 m
10 m
12 m
1
1
2
---
1
2
---
2 S S a ( ) S b ( ) S c ( )
15 15 8 ( ) 15 10 ( ) 15 12 ( )
15 7 5 3
1575
3
WORKEDExample
1. Area of a triangle = ab sin C
where a, b are sides and C is the included angle.
2. Pythagoras theorem relates the length of the hypotenuse, c, and the remaining
sides, a and b, in a right-angled triangle:
a
2
+ b
2
= c
2
3. The area of a triangle of sides a, b and c can be found by Herons formula:
Area =
where S is the semi-perimeter. S = (a + b + c).
1
2
---
S S a ( ) S b ( ) S c ( )
1
2
---
remember
6A
2 cm 2 cm
2 cm
h
26 m 26 m
24 m
h
9.7 m
12.4 m
h
WORKED
Example
1
3 Find the area of the following triangles.
a b
c d
4 Find the perimeter and semi-perimeter of the triangles below.
a b c
5 Use Herons formula to nd the area of the triangles in question 4.
Perimeters and areas of polygons
Surveyors are often engaged to determine the area of a portion of land that may have an
irregular shape. Any polygon can be divided into a number of triangles. The area of the
polygon is the sum of the areas of the individual triangles.
WORKED
Example
2
10 m
5 m
30
3 m
3 m
127 m
153 m
50
11.4 m
23.7 m
119
WORKED
Example
3
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SkillSHEET 6.2
Herons formula and
the sine rule
8 m
7 m
11 m
16.4 m
41.7 m
32.8 m
8.1 km
14.6 km
19.7 km
Find the area of the eld shown to the nearest
square metre. (This sketch is not drawn to scale.)
THINK WRITE
The area of the polygon can be
divided into three triangles.
Area of ABCDE = area ABC + area ACD + area ADE
Find the area of each
of the three triangles.
Area ABC = 250 m 320 m sin 20
= 13 681 m
2
Area ACD = 320 m 325 m sin 40
= 33 425 m
2
2
2
5

m
3
2
5

m
3
2
0
m
250 m
30
40
20
A
B
C
D
E
1
2
1
2
---
1
2
---
4
WORKEDExample
The area of land can also be expressed in hectares. Recall that 1 ha = 10 000 m
2
. So the
area of the eld in Worked example 4 is 6.5387 ha or 7 ha to the nearest hectare.
THINK WRITE
Area ADE = 325 m 225 m sin 30
= 18 281 m
2
Calculate the total area. Area ABCDE = 13 681 + 33 425 + 18 281 m
2
= 65387 m
2
Note: Realistically, the accuracy of the third gure is not certain, and 65 400 m
2
would be
as close as we could justify in this example (in fact, the answer lies somewhere between
65 200 and 65 600 m
2
). However, to illustrate the process in worked examples, all digits
have been calculated. You should always be cautious about the accuracy of later digits in
such calculations.
1
2
---
3
Find the area of the paddock shown to the
nearest square metre. This sketch is not drawn
to scale.
THINK WRITE
The gure can be broken
into two triangles,
LABC and LACD.
Calculate the area of
LABC using Herons
formula.
For LABC
S = (64 + 58 + 97)
= 109.5
Area =
=
=
= 1791 m
2
Calculate the area of
LACD.
For LACD
S = (97 + 32 + 108)
= 118.5
Area =
= 1521 m
2
Find the total area by
adding the two areas.
Area of ABCD = area ABC + area ACD
= 1791 + 1521 m
2
= 3312 m
2
9
7
m
A
B C
D
58 m
64 m
32 m
108 m
1
2
1
2
---
S S a ( ) S b ( ) S c ( )
109.5 109.5 58 ( ) 109.5 64 ( ) 109.5 97 ( )
109.5 51.5 45.5 12.5
3
1
2
---
118.5 21.5 86.5 10.5
4
5
WORKEDExample
Perimeters and areas of
polygons
1 Find the area of the regions shown, to the nearest square metre. Diagrams are not to scale.
a b c
2 Find the area of the gures shown.
a b
3 Find the area of the paddock shown in the gure below, to the nearest hectare. The
scale used is 1 : 10 000.
4 Draw scale diagrams of the regions shown in the gures in question 1 using a 1 : 1000
scale for a and b, and a 1 : 5000 scale for c.
1. The area of a triangle can be determined using the formula:
Area of a triangle = ab sin C
where a and b are two sides of a triangle and C is the angle between those sides.
2. The area of polygons can be found by dividing the gure into a number of
triangles and then nding the area of each triangle.
1
2
---
remember
6B
WORKED
Example
4
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SkillSHEET 6.2
Trigonometric values
and angles
Spreadsheet
063 Perimeter
and area
109 m
62 m
78 m
40 m
35 m
5
0

m
30
40
121 m
156 m
2
1
4

m
1
9
0

m
32
34
41
WORKED
Example
5
11 m
12 m
8 m
14 m
9 m
45 m
32 m
58 m
62 m
48 m
41 m
59 m
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047 Map scales 1
048 Map scales 2
Finding perimeter and area using
pace length
Determining pace length
Materials required: tape measure or metre rule.
Mark out an accurately measured distance of 100 m. Record the number of
normal walking paces required to cover this distance. Repeat this process.
Find the average number of paces required to cover 100 metres. This gure can
now be used to estimate lengths. Each member of the group should record his or
her number of paces required to cover 100 m. Now calculate the number of strides
per 10 metres.
Estimating distance and area using pacing
Materials required: 5 marker domes marked 1 to 5, drawing compass.
This activity is best done on a large quadrangle or oval. Your teacher will set out
5 marker domes dening the perimeter of an irregular polygon.
Your tasks are:
1 Draw a neat scale diagram showing the location of the domes numbered 1 to 5.
You are to use pacing to estimate distances, and you are to collect sufcient
measurements to ensure that the position of the domes can be accurately
located on your diagram. A drawing compass may assist in the sketching.
2 Determine the perimeter of the polygon dened by the 5 domes.
3 Calculate the area of the region enclosed by the perimeter of this polygon.
Finding perimeter and area using
your computer
Visit the website of your local council. They allow access to information, maps and
plans concerning the block of land where you live and your school grounds. Use
this site to nd the plan showing the boundaries of your school and/or home site.
Now use a measuring tool such as the Measure facility in Red-e-Map (use the
Redland Shire Council weblink in your eBookPLUS to access this facility) to
determine the perimeter of your school and/or home site. You can also use this
facility to accurately determine the area of your school grounds, home site or any
part thereof.
Measuring a perimeter made simple
Many modern hand-held laser meters that are now available are quite inexpensive,
and can be useful for simple and rapid distance measurement. These devices allow
areas to be determined using the push of a button, and are now an invaluable aid to
many trades people, as time involved in estimation and quoting is signicantly
(Continued)
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Surveying on level ground without
obstacles
It is essential that the size and shape of the Earths surface be accurately recorded. The task
of the surveyor is to link the shapes and sizes of parts of our real three-dimensional world
(with all its hills, gullies, ridges, boulders and trees) to the two-dimensional survey map
drawn to scale. Initially, we shall investigate working on level ground without obstacles;
later, we shall examine more difcult surveys, where physical obstacles get in the way.
A surveyor is interested in measuring distance between objects in a straight line. This
is done by rst setting out a straight line known as a survey line, which requires the use
of a number of poles called staffs.
Julie is a surveyor who needs to determine the distance from A to B (which is too
large to measure directly with a tape) over level ground.
How does she do it? She and an assistant set up staffs at A and B. The line AB is the
survey line.
A C D E F B
Julie moves directly behind staff A. Looking back to staff B, she has the assistant
place the staffs C, D, E and F between A and B, ensuring they are all in a straight line.
The smaller distances (AC, CD, DE etc.) can then be measured.
reduced. Obtain a laser distance meter
and use it to determine the perimeter
and area of your classroom and other
areas around your school. These devices
can be used to check the accuracy of your
pace length in the previous investigation.
A laser distance meter can also be
employed to verify the accuracy
of hand-held GPS devices. However,
measurements made with hand-held
GPS instruments are less accurate than
those made with a laser distance meter.
The example below shows how a surveyor would record the results of a survey of at
land in a eld book. The locations of some features of the landscape are to be included.
A eld is to be surveyed, and a eld sketch is made, showing major features at
5 locations (see H, I, J, K and L in gure a). The area is rst studied to select a suitable
survey line. The line AB is selected in the diagram below because there are no obstruc-
tions along it.
Figure a
Intermediate staffs are
then placed at C, D, E, F
and G opposite the features
at H, I, J, K and L respec-
tively. The staffs at C to G
are placed so that CH, ID,
EJ, KF and GL are at right
angles to AB. These dis-
tances (CH to GL) are
known as offsets.
Measurements are then
recorded in a eld book so
that a scale diagram of this
area can later be drawn.
Figure b shows the eld
book entry, as a surveyor
would make it. The survey
line AB is shown as a
double line ruled vertically
in the middle of the page.
A
B
C
D
E
F
G
H
I
J
K
L
B
A
105
120
155
G 32
L
J
I
K
H
C
D
F 23
E 46 73
59
36 28
42
Figure b
The length of the survey line is indicated at B (155 m). The lengths of all offset
measurements are shown (for example CH = 28 m) and the position of intermediate
staffs is given (for example D is 59 m from A). The eld book entries are not drawn to
scale.
This eld book entry can then be used to draw a scale diagram of the area sur-
veyed. This scale diagram allows the surveyor to nd distances between points that
had not been directly measured in the eld. However, some distances, angles and
areas can be determined from the eld book entries by calculation, as shown in the
example below.
Use the eld book entry shown in gure b on page 327 to nd:
a ID b GA c EJ
d CD e HI f the magnitude of AHC
g the area of LJEA h the area of KFDI.
THINK WRITE
ac The eld book entry gives the
distances of ID, GA and EJ directly.
a ID = 42 m
b GA = 120 m
c EJ = 46 m
d The point C is 36 m from A and point
D is 59 m from A, so CD = AD CA.
d CD = AD CA
= 59 36
= 23 m
e The points C, D, H and I are
redrawn.
e
A line HX, perpendicular to ID, is
constructed.
HX then must equal 23 m.
HI can be determined using
Pythagoras theorem.
HI
2
= IX
2
+ HX
2
= 14
2
+ 23
2
HI
2
= 725
HI 27 m
f In LAHC, AC is the opposite side
and HC the adjacent side for AHC.
Tangent ratio can now be used to
nd AHC.
f tan AHC =
=
= 1.286
The inverse function on the
calculator is now used.
AHC = 52
1
42 m
28 m
X
I
H
D
C
23 m
2
3
4
1
opposite
adjacent
--------------------
36
28
------
2
6
WORKEDExample
Surveying on level ground
without obstacles
1 Use the eld book entry (gure b) on page 327 to nd the distance of:
a LG b HC c DA d AE e GE.
2 Use the eld book entry (gure b) on page 327 and Pythagoras theorem to nd:
a AJ b AK c BL d LJ.
3 The sketch, gure a, on the next page (not to scale) shows a survey line AB and a
number of features in an area being surveyed. Intermediate staffs at C to G are placed
at locations where features are seen at right angles to the survey line. The distance AB
is 180 m, AC = 40 m, AD = 80 m, AE = 95 m, AF = 110 m, AG = 150 m.
1. To produce an accurate scale diagram of an area, a survey line is chosen.
2. Perpendicular distances from a survey line to surrounding features are known
as offsets.
remember
THINK WRITE
g The area of LJEA can be
calculated using (base
perpendicular height) 2.
g Area = base perpendicular height
= 73 46
= 1679 m
2
h A diagram of KFDI is
drawn with all dimensions
shown.
h
FD can be calculated as
AF AD.
FD = AF AD
= 105 59
= 46 m
The gure has one pair of
parallel sides and hence it is
a trapezium. The area of a
trapezium rule can be used.
Area = perpendicular height
=
= 1495 m
2
1
2
---
1
2
---
1
K F
D I
42 m
46 m
23 m
2
3
sum of parallel sides
2
-------------------------------------------------
23 42 +
2
------------------ 46
6C
WORKED
Example
6ad
WORKED
Example
6e
a Sketch the entry that a surveyor would make in a eld book. Your sketch should
resemble the eld entry shown in gure b on page 327 and it does not need to be
drawn to scale.
b Draw a map of this area using a 1 : 1000 scale. Label all features.
4 A eld book entry is shown at right.
a How long is the survey line?
b How many intermediate staffs
were placed between A and B?
c What is the distance between:
i D and A?
ii D and F?
iii E and G?
iv Z and C?
v W and F?
d Find the distance from:
i V to A
ii B to X
iii Z to Y
iv Y to W.
e i What is the magnitude of
iii VAB?
ii Find the area of LDYF.
iii An observer is at feature Y, looking at V. Find the angle of intersection of the
line of sight with survey line AB.
f Draw a 1 : 1000 sketch representing this information.
g Briey describe the steps that would have occurred to produce this eld map.
h Find the area of XZCG.
Flagpole
B
A
C
D
E
F S
M
G
T
Large gum tree
50 m
30 m
60 m
60 m
20 m
Picnic table
Maintenance
shed
Figure a
B
A
87
100
120
40
X
Y
W
G
C
F
E
35
52
63
48
35 32
45
V D
Z
Figure b
WORKED
Example
6f, g
WORKED
Example
6h
Drawing a eld map by survey
A school quadrangle is ideal for this exercise. Groups of 3 to 4 students are required.
Equipment needed: 10-m tape measures; several poles (metre rules can be used).
Select a relatively level piece of ground that has a number of large features on it;
for example buildings, trees, agpole. Choose a survey line AB so that there are no
obstacles in the path of this line. An observer at one end is to direct assistants to
move their staffs so they are directly on the line AB. The assistants are to position
themselves so that they are perpendicular to features that the group wishes to
include on the eld map. (An estimate of 90 is sufcient for this activity although
you may wish to employ a little help from Pythagoras.)
Record all information gathered on a eld map using the method shown above.
The length of the survey line and the distance from the survey line to features are
to be measured. Use this eld map to then draw a scale diagram of the area using a
suitable scale. Determine the area of the gure dened by joining the ends of the
survey line and the feature points. You can check the accuracy of your work using
a laser distance meter described in an earlier investigation on pages 3256.
Mapping using the GPS
This investigation involves the collection of data outdoors, using a hand-held GPS
and then plotting points on graph paper back in the classroom. Prior knowledge
needed for this investigation includes:
plotting a position point using latitude and longitude (see Chapter 5 page 251)
an understanding of the term minute. One minute = 1 = .
Choose a large outdoor area bounded by a number of signicant features.
Alternatively, you can work on an oval or large paddock with marker domes.
Use the GPS to store the position of each feature bounding the area.
Now use the GPS to determine the distance between any two features and record
this gure.
You should notice that there is a small amount of error in the device. You can
change your position slightly, and the latitude and longitude reading on the screen
will not change.
A far more accurate measure of distance between any two features can be
determined using a laser distance meter described in the investigation on
pages 3256, or the electronic theodolite (page 352).
You will notice that the GPS describes latitude and longitude to the nearest 0.001.
Back in the classroom, plot the position of each point on graph paper. Use the
horizontal axis for longitude (East) and the vertical axis for (South). Use a scale
that will include all points, well separated across your paper. You have now
produced a simple map of the area including your features. Label the distance
between the two features you recorded. You can now determine a scale for your
map if you wish.
You can also plot these points on a graphics calculator.
It is also possible for students to produce high quality maps using OCAD software.
An investigation on mapping is included in the Orienteering section on page 372.
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1
60
--------
1 Find the length of the hypotenuse in this gure.
2 State the formula for the area of the triangle shown,
in terms of sides a and b, and the angle C.
3 Find the area of each of the triangles below.
4 State Herons formula for the area of a triangle of sides a, b and c.
5 Find the area of this gure, using Herons formula.
Use the sketch at right,
which shows a eld
book entry, to answer
questions 6 to 10.
All entries are in metres.
6 Which line is the survey
line?
7 GL is an offset. Name four
other offsets.
8 Give the lengths of AC,
AD, AE, EF and GC.
9 Give the area of LGFL.
10 Calculate the magnitude of:
a ECJ
b CJ.
1
4.1 m
3.6 m
a
b
C
10.6 m
18.3 m
30
15 m
32 m
125
7 m
8 m
13 m
B
A
105
120
155
G 32
L
J
I
K
H
C
D
F 23
E 46 73
59
36 28
42
Surveying around obstacles
Quite often, obstacles such as rivers, hills or trees will prevent a surveyor from having
uninterrupted survey lines. Two methods to overcome such obstacles are the offset
method and triangulation.
Offset method
This method is useful when direct measurement is not possible (for example, due to the
presence of a marsh or pond) but vision is not restricted. The diagram shows inter-
mediate staffs located at D and E on the survey line on either side of the pond.
Equal offsets EE
1
and DD
1
are marked out perpendicular to the survey line. Points
D
1
and E
1
are chosen so that they are clear of the pond.
Line D
1
E
1
is parallel to the survey line and of equal length to DE. D
1
E
1
is measured,
which gives the length of DE.
The offset method can also be used when vision is prevented by tall objects. If a
building is in the path of a survey line, the surveyor cannot measure directly along this
path. The gure below shows how the offset method can be used to survey around a
house. G and H are points on the main survey line.
Offsets GG
1
and HH
1
are set perpendicular to, and equidistant from, the main survey
line. A second survey line G
1
H
1
I
1
J
1
is then set up parallel to the main survey line. Equal
offsets I
1
I and J
1
J are set off perpendicular to G
1
H
1
I
1
J
1
so that IJ can now be continued.
The length H
1
I
1
is equal to the desired length HI.
D
D
E E
Pond
Survey line
D
1
E
1
Pond
G H I J
Survey line
G
1
H
1
I
1
J
1
Building
Triangulation method
The gure below shows the triangulation method for surveying across the pond.
Staff P is placed so that lines EP and DP are free of obstructions. EP is continued to
Q such that EP = PQ and DP is continued to R so that DP = PR. The triangles formed
are congruent and so DE = QR. Once again we are able to measure QR and hence DE.
Triangulation can also be used across streams and rivers where vision is not inter-
rupted. The gure below right shows intermediate staffs at C and D. A staff is placed at
X so that CX is perpendicular to the survey line. Another staff is positioned at Y, the
midpoint of CX.
A staff is then placed at Z so that D, Y and Z are in a straight line and ZX is parallel
to the survey line. Triangles formed are congruent and so CD = ZX.
Q
R
P
D
E
Pond
Survey line
River
D
C
Y
X
Z
Find the unknown, XY, in each of the following.
a b
THINK WRITE
a Since the offsets are equal in length and
perpendicular to the line XY, CDYX is a
rectangle.
a CDXY is a rectangle.
CD = XY
XY = 37 m
b LABC and LYXC are congruent. b Triangles ABC and YXC are congruent.
XY = BA
XY = 26 m
Swamp
X
C
D
Y
Given:
CD = 37 m
River
X
Y
Given:
AB = 26 m
BC = CX
B
A
C
7
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 7
int-0474
Surveying around obstacles
1 Find the unknown side, XY, in the following diagrams.
a b
c
2 Describe with the aid of a diagram how the distance XY could be found in each of the
following gures. All surfaces are level. X and Y are points on a main survey line. XY
cannot be measured directly.
a b
3 Sally and Jack are on opposite sides of a river and are attempting to determine the dis-
tance between them. Sally marks her position with a staff, and directs her assistant
Peter, on her side of the river, to move 20 m away from her, and perpendicular to the
line of sight across the river.
Peter marks this spot with a staff. Peter then moves another 20 m and places a
second staff so that the two staffs that he has positioned, and Sallys staff, are in a
straight line.
Peter then walks away from the river, at 90 to the line of staffs he has set up with
Sally. He keeps walking until the rst staff he positioned is in line with Jack. He then
sets up a third staff.
a Show this information on a diagram.
b Indicate a distance Peter could measure that would be equal to the width of the river.
The presence of obstacles such as rivers, swamps, hills or dwellings can result in
the survey line being interrupted. Obstacles can be bypassed using the offset and
triangulation methods.
remember
6D
WORKED
Example
7
Pond
42 m
X Y
Building
X
Y
Q
R
QR = 31 m
X
Y Q
P
PQ = 52 m
Stream
Pond
X
Y
X
Y
Building
Bearings and reverse bearings
Some of the topics discussed in Chapter 5 on navigation are required for an under-
standing of land measurement. At this point, you should cover the sections Using the
compass and Compass bearings and reverse bearings including exercises 5D and 5E
(pages 268 to 272) if you have not already covered these topics.
Plane table surveying: intersection or
triangulation
A plane table survey is a reasonably rapid method of mapping an area and can be
done with relatively inexpensive and readily available equipment. However, the results
obtained are not as accurate as those determined by some other methods. Equipment
required includes:
1. a level table a picnic table or school desk will sufce
2. a spirit level to check the level of the table
3. a large board the type used by graphics students is ideal
4. a large piece of drawing paper attached to the board with pins or tape
5. an alidade this is a sight rule (a rule with pins inserted at either end will sufce
for this see the gure below).
6. a plumb bob (may be used to improve the accuracy of results)
7. a marker peg and hammer (if the plane table is located on an earthy or grass surface)
or chalk (if working on concrete or asphalt)
8. a compass (so that the direction of magnetic north can be marked on the map)
9. staffs or metre rulers.
The triangle is frequently used in surveying to x the position of a landmark. This is
because any 3-sided gure is a rigid shape.
The steps involved in the intersection or triangulation method using the plane table
are as follows (see the sequence of gures a, b, c and d in this section).
Step 1 A base survey line, AB, is chosen within the area that is to be surveyed. This
distance, AB, should be as large as is convenient. Rods are placed at points A
and B. Points A and B should be chosen so that all features required on the
map to be drawn are clearly visible from both of them. These points (A and B)
are then marked with pegs hammered into the ground (if working on a grassy
surface) or with chalk (if working on concrete or asphalt). The distance AB
between these rods is carefully measured and noted. This distance is the only
measurement required using this method.
The line AB is then drawn to a suitable scale, as line AB on the paper xed
to the board. (The points A and B on the ground are represented by the points
A and B on the paper.)
eBookplus eBookplus
Digital doc:
WorkSHEET 6.1
Step 2 Place the plane table over pos-
ition A. Ensure that it is level
using the spirit level. Move
the board on the table so that
A already marked on the
paper is directly above point A
marked on the ground below.
You may use a plumb bob to
assist with this, although a
reasonably accurate esti-
mation of position is possible.
Ensure that the line AB
drawn on the paper is in line
with the actual line AB as
shown in gure a. This is
done by looking down the
drawn line AB to an assistant
holding a pole at point B.
Step 3 Use the alidade (sight rule) to
align point A on the paper
with feature W. Draw a faint
line on the paper in pencil
showing the direction from A
to W. Check again that the
board is in its correct position;
that is, that the drawn line AB is in line with the base survey line AB, and that
the drawn position of A is directly over A.
Then mark on the paper the lines of sight from point A to all other
features.
Figure b shows the lines of sight from point A to features W, X and Y
(drawn as W, X and Y respectively, near the edge of the paper).
Figure b
A
A' B'
A'
B'
W
W
Y
X
Y
X
B
B
Figure a
A'
B'
Y'
X' W'
B
W
X
Y
Step 4 The table and board are then moved to point B so that B marked on the paper
is directly over B on the ground. Again, ensure this is done as accurately as
possible and that the table is level. Line AB on the paper is again positioned
in line with the base survey line AB (see gure c).
Figure c
Step 5 The sight rule is used to position
the lines of sight to relevant
features W, X and Y. These are
marked on the paper as lines to
cross the lines AW, AX and
AY. The position of the board
is regularly checked by ensuring
B on the map is directly over B
on the ground, and the line AB
on the map is aligned with the
base survey line.
The intersection of the marked lines of sight (gure d) will give the new,
correct positions of W, X and Y, and thus the features W, X and Y.
Step 6 The compass can be used to determine the direction of north and this, as well
as the scale used, can be noted on the map.
A'
B' A
Y
X
W
A' B'
X'
W'
Y'
Figure d
A'
B'
The gure at right shows a map resulting
from a plane table survey using triangulation.
A 1 : 2000 scale has been used and the
direction of true north is shown.
Find:
a the length of the survey line AB
b the bearing of
iii X from A
iii Y from A
iii B from A
iv X from B
iv Y from B
c the perimeter of AXBY
d the area of AXBY to the nearest
0.01 hectare.
Continued over page
THINK WRITE
a Measure AB on the gure and convert
to distance on the ground.
a AB = 6 cm 2000
= 12 000 cm
= 120 m
b A protractor is used to measure each of the
bearings.
b Bearings of:
iii X from A = 060
iii Y from A = 160
iii B from A = 090
iv X from B = 315
iv Y from B = 230
c Determine the lengths of all sides. c AX = 44.5 mm XB = 31 mm
BY = 60 mm YA = 41 mm
To nd the perimeter of the gure, add
the lengths of AX, XB, BY and YA.
Total = 176.5 mm
Convert to the distance on the ground. Perimeter = 176.5 mm 2000
= 353 m
d Divide the gure AXBY into two
triangles, and calculate the area of each
triangle using Herons formula.
A =
d Area AXBY = Area of LAXB
+ Area of LAYB
Calculate the area of LAXB.
(a) Calculate S.
S =
=
= 135.5 m
X
N
A
B
Y
1
1
2
3
1
S S a ( ) S b ( ) S c ( )
2
a b c + +
2
---------------------
89 62 120 + +
2
---------------------------------
8
WORKEDExample
Plane table surveying:
Note: Students should be able to measure lines accurately to
the nearest 0.5 mm. However, some lines will be difcult to
assess, and in marginal cases, discrepancies of 0.5 mm may
be unavoidable. The focus should remain on mathematical
processes, so when an answer depends on line measurement,
allowance should be made for differences that may arise
from such discrepancies.
1 During an environmental study, a map is drawn from
a plane table survey. This map is shown in the gure at right.
(Scale 1 : 2000.) Find:
a the length of the survey line AB
b the lengths of:
i AC ii CB iii BD iv AD
c the bearing of:
i C from A ii C from B iii D from B iv D from A
d the perimeter of ACBD
e the area of ACBD to 0.01 ha.
THINK WRITE
(b) Calculate the area. Area =
=
= 2679 m
2
Calculate the area of LAYB.
(a) Calculate S.
S =
= 161
(b) Calculate the area. Area =
= 4624 m
2
The total area of the gure is found by
adding areas of LAXB and LAYB.
Area AXBY = 2679 + 4624
= 7303 m
2
= 0.73 ha (1 ha = 10 000 m
2
)
S S a ( ) S b ( ) S c ( )
135.5 46.5 73.5 15.5
3
120 82 120 + +
2
------------------------------------
161 41 79 41
4
Plane table surveying makes use of a horizontal table. One of the key plane table
surveying methods is called intersection or triangulation. Lines of sight to
prominent features are taken from either end of the base survey line. The
intersection of these lines on the survey map gives the positions of the features.
remember
6E
WORKED
Example
8
A
B
C
N
D
2 The gure at right shows a drawing resulting
from a plane table survey using triangulation.
The scale used is 1 : 1000. The direction of
true north is marked.
a Find the length of the base survey line AB.
b Find the distance from:
i B to W ii W to V iii V to A
iv V to X v A to X.
c By dividing the area into triangles,
determine the area of gure BWVAX
to the nearest 0.01 hectare.
d An observer is at B. Give the bearings
of points:
i W ii A iii X.
3 The simplied results of a plane table
survey are shown in the gure at right
(scale 1 : 500). Find:
a the perimeter of ABCDE
b the cost of fencing this perimeter
at $16 per metre
c the area of ABCDE.
4 Jason is at point A. Peta is 100 m from
Jason on a bearing 090 at point X. Jason
observes a tower at point B on a bearing
050 and a tree at 150 at Y. Peta notes the
bearing of the tower as 310 and tree as 240.
a Use this information to draw a 1 : 1000 sketch.
b Use this diagram to nd the length of:
i AX ii BX iii AY iv YB v XY.
c An observer is at X. Give the bearing of:
i A ii B iii Y.
d Calculate the area of ABXY to the nearest 100 m
2
.
Drawing a scale diagram
Materials required: table (or desk, picnic or card table), spirit level, board, paper,
tape or drawing pins, sight rule, wooden pegs and hammer or chalk, poles or metre
rulers, compass.
In groups of 3, you are to draw a scale diagram of an area in your school
grounds using the intersection method. Include the scale used and the direction of
magnetic north. Include as many prominent features in this area as you can.
Less-prominent features can be included by recording them as offsets from the
main lines of sight.
Determine:
1 the perimeter formed when outermost features on the map are joined
2 the area bounded by this perimeter.
You can check the accuracy of your work by using the laser distance meter
described on pages 3256.
N
W
V
A
Z
Y
X
B
N C
A
D
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Plane table surveying: radiation and
traversing
We shall now consider two other methods of plane table surveying: the radiation survey
(using the table at only one point) and the traversing survey (using the table at several
points).
Radiation survey
The radiation method of surveying is suited to the mapping of small areas. It can be
completed quickly because the table is set up at one point only, rather than at two
points using the triangulation technique. The method is as follows:
1. A suitable spot is chosen (point A) located approximately at the centre of the region
to be surveyed. All features to be plotted on the map should be visible. This point is
then marked by a peg or with chalk.
2. The table is placed over point A.
The table is levelled and the board
with paper taped to it is positioned
on the table. Point A is marked on
the paper directly over point A on
the ground. A plumb bob can be used
to assist with this procedure.
3. Use the sight rule to draw the line of
sight to feature B, as shown in
gure a at right.
4. This is repeated so that lines of sight
to C, D, E and F (off page to left) are
drawn.
5. The distances AB, AC, AD, AE and
AF are measured. A suitable scale is
chosen and points B, C, D, E and
F are then marked on this map.
6. The direction of magnetic north is
determined using a compass and
marked on the map.
Figure b shows an example of a
sketch drawn by the radiation method.
A
A'
B'
B
C
D
Figure a
E'
B'
C'
D'
F'
A'
Scale 1:2000
Figure b
Use gure b above to answer the following.
a Find the length of: i AF ii AD iii AB iv DE v CB.
b If C is due north of A, give the bearing from A of: i B ii E iii D.
c Find the area of LABC.
THINK WRITE
a Lengths are measured and
converted to metres using the
scale 1 : 2000.
a AF = 51 m AD = 38 m
AB = 60 m DE = 106 m
CB = 44 m
9
WORKEDExample
Traversing survey
The traversing-plane-table method requires the plane table to be moved over each
important feature that is to be identied on the map. Distances between each feature are
to be measured. Steps involved are:
1. Examine the area to be surveyed and determine points A, B, C, D, etc. to be included
on the map. These can be marked with pegs or chalk depending on the type of surface.
2. Position the plane table
directly over point A.
Ensure that it is level. Tape
paper to the board and
mark point A on the paper
such that it is directly
above A on the ground.
Use the alidade (sight rule)
to sight a pole held by an
assistant at point B. The
line of sight AB is marked
on the map. The line of
sight AD is then also
marked as shown at right
(gure a).
3. The distances AB and AD are measured. Points B and D are then marked on the
map using a suitable scale.
4. The table is moved to B and
levelled. The board is moved
so that B on the map is
directly above B on the
ground. Line BA on the map
is aligned with the line of
sight to A. The line of sight to
C can then be drawn as shown
in gure b. Distance BC is
measured and C is then
plotted on the map.
THINK WRITE
b A protractor is used to measure
each of the angles clockwise from
north.
b iii B is 045.
iii E is 090.
iii D is 300.
c Three sides are known, so
Herons formula can be used.
c AB = 60 m; AC = 29 m; CB = 44 m
First nd S, the semi-perimeter. S =
= 66.5
Calculate area. Area =
= 604 m
2
1
2
60 29 44 + +
2
------------------------------
3
66.5 66.5 60 ( ) 66.5 29 ( ) 66.5 44 ( )
047
C
B
D
A'
Figure a
B'
A'
D'
A
C
Figure b
5. The table is then moved directly above C. The board is positioned so that C on the
map is above C on the ground. CB on the map is aligned with the line of sight from
C to B. The line of sight to D can now be drawn, and should match that predicted by
the map positions of C and D, The accuracy of the map can be checked by moving
the table to D. From D, the lines of sight to A and C should match lines DA and
DC on the map.
Bill places a table over point A and sights B, 50 metres away, on a bearing of 0, and point
D, 50 metres away, on a bearing of 090. He moves the plane table directly over point B
and now notes the position of point C as 100 metres from B on a bearing of 090.
a What method of surveying is Bill using?
b Draw a neat sketch representing this information.
c What is the expected bearing of D from C?
d Find the area of ABCD.
THINK WRITE
a The table has been moved over the top
of a number of features, so the
traversing method was used.
a Bill is using the traversing method.
b Starting at A, draw a vertical line
upwards to represent AB. Label AB
as 50 m.
b
Draw AD at right angles to AB.
Mark this as 50 m.
Draw BC at 90 to AB and parallel
to AD.
c (a) If the diagram is accurately
drawn to scale, angle BCD will
be measured as 45.
(b) Alternatively, an isosceles
triangle can be constructed by
drawing line DX perpendicular to
BC. Then, in LCXD, XC = XD.
c
CX = XD
XCD = 45
Measuring clockwise from north, the
bearing of D from C is 225.
Bearing of D from C = 225
d The area of ABCD is the sum of the
areas of the square ABXD and the
triangle CXD.
d Area = 50
2
+ 50 50
= 3750 m
2
1
A
D
C
B
50 m
50 m
100 m
2
3
1
A
D
X
C
B
50 m
50 m
50 m 50 m
50 m
2
1
2
---
10
WORKEDExample
Plane table surveying:
1 The gure at right shows a map
produced by the plane table radiation
method.
a Find the length of:
iii AB ii AD
iii DE iv BD.
b What is the bearing from A of:
i B? ii C? iii E?
c Find the area, to the nearest 100 m
2
,
of the gure FBCDE.
2 The gure below shows the results of a plane table survey using the traverse method.
a Give the lengths of:
i VW ii WX iii XY
iv YZ v VZ vi VY
ivii VX.
b Find the area enclosed by this gure, to the nearest 0.01 ha.
Two other plane table survey methods are:
1. Radiation: Lines of sight and distances to prominent features are marked from
one point only.
2. Traversing: The plane table is moved over several prominent features and lines
of sight are drawn at each location.
remember
6F
WORKED
Example
9
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Digital docs:
Spreadsheets
047 Map scale 1
048 Map scale 2
N
A
B
C
D
E
F
Scale 1:1000
N
X
W
V
Z
Y
Scale 1:1000
3 Cameron sets up a plane table at O and from this point makes the following notes about
the surrounding features A to E.
a What surveying method is Cameron using?
b Draw a neat sketch representing this information. Use a 1 : 1000 scale.
c An observer is at E. From E, what would you expect to be the bearings of A, B, C
and D?
d Estimate the area enclosed by the perimeter linking features A to E. Express to the
nearest 10 m
2
.
4 Margaret places a plane table directly over point A and sights B, 60 m from her on a
bearing of 020, and D, 50 m away on a bearing of 100. She moves the plane table to
B and notes the bearing of C, 70 m from her, to be 090.
a Draw a neat 1 : 1000 sketch showing this information.
b What method of surveying is Margaret employing?
c Margaret then moves the plane table to C. What bearing is expected of:
i D? ii B?
d What is the distance from C to:
i A? ii D?
e Determine the area of ABCD to the nearest 100 m
2
.
1 Name two methods that can be used to survey around obstacles.
2 Give the length of AB in each case.
3 Name three methods of plane table surveying.
Feature Distance to feature
Bearing of feature
from O
A 25 m 045
B 35 m 120
C 20 m 180
D 40 m 250
E 65 m 325
WORKED
Example
10
2
B
A
Pond
D
C
Given
CD = 41 m
B
A
D
C
Given
CD = 10 m
Large tree
4 Which of these three methods requires lines of sight taken from either end of a
survey line?
5 Which method requires all lines of sight to be taken from only one point?
6 Which method requires the plane table to be moved over several points with lines
of sight taken at each?
7 In the eld, Janelle measures a distance of 57.5 metres. She is producing a survey
map with a scale of 1 : 200. What length on the map (in mm) would represent this
distance?
8 An irregularly shaped eld has 6 sides. Daniel intends to determine its area by
dividing it into triangles. Daniel will need to nd the area of what minimum
number of triangles?
9 A triangle has sides of 24, 27 and 41 metres. State Herons formula and use it to
nd the area of the triangle.
10 A triangle has sides of 5 and 8 metres with the included angle (the angle between
them) of 30. Find the area of this triangle.
Levelling: vertical measurements in
relation to a datum
The survey methods discussed so far assume that one is working on relatively level sur-
faces. This is often not the case: undulations within the perimeter of a portion of land
will affect the area of this portion. Consequently, the above methods cannot be used on
sloping surfaces unless height variations are taken into account.
Levelling is the surveying process of determining the relative heights of points on
the Earth. It is concerned with nding the difference in height, or level, between two
points. Clearly, if point X is 10 m above ground level and Y is 3 m above ground level,
then the difference in level is 7 m.
Levelling is of great importance
in the construction of buildings.
Various levelling devices (the spirit
level, string line and water level) and
their principles of operation are
described in Maths Quest, Maths A
Year 11 for Queensland 2nd edition,
(Chapter 7). The dumpy level is a
levelling device that is often
employed in preparing a site for
construction. It derives its name
from early models which were
compact telescopes mounted on tripods. The dumpy level establishes a level line of
sight known as a line of collimation.
The dumpy level must be level itself when it is being used. It therefore has a bubble
which can be centred by adjusting the footscrews.
Laser levels emit horizontal rays of laser light. These can be detected either by sen-
sors which slide up and down the graduated staff or by telescope.
A theodolite is a multi-purpose surveying instrument. It consists of a telescopic sight
mounted on a tripod, again with a levelling mechanism. It allows measurements of angles
in the horizontal plane and angles of depression and elevation in the vertical plane.
Graduated staff used
to obtain height reading
Line of collimation
Levelling device
Figure a
A level line or surface to which other heights or levels are referenced is known as a
datum line or datum surface. Ofcial datum levels are known as ordnance levels. A
benchmark (BM) is a xed point of known level with reference to an ordnance level.
There are thousands of benchmarks used, and these are usually placed on features such
as bridges and buildings. Any survey can be referenced by a benchmark, as their
heights above mean sea level are accurately recorded.
A temporary benchmark (TBM) is a point selected by a surveyor for a particular
task. A prole is a cross-sectional view of the surface being surveyed. The prole level
is the survey undertaken by a surveyor when heights of various positions are taken and
recorded. The diagram in gure b (below) shows a theodolite located on sloping
ground between points A and B. The survey begins by placing a staff on point A which
is either a benchmark or temporary benchmark. The theodolite is then positioned
between A and B. A sighting back to point A is made rst and the backsight is noted.
The sighting to B is then made, and the foresight is noted. The backsight and foresight
recordings can then be used to calculate the reduced levels of A and B. The reduced
level (RL) is the height of a point above the datum line. Figure c shows a sketch of a
prole level.
Line of collimation
Graduated staffs to measure height
Backsight
Foresight
Datum line
Reduced
level of
station B
Point A is
a bench-
mark or
temporary
benchmark.
Reduced
level of
station A
A
B
Figure b
3.84 1.62
80.00
Distance
Backsight (in metres) Foresight (in metres)
10.00
Temporary
benchmark
level
B
A
Figure c
The information contained in this sketch is usually recorded in a surveyors book as
follows:
The abbreviations used in this
table are Sta: station; BS: back-
sight; IS: intermediate sights;
FS: foresights; HI: height of
instrument (the height entered in
the table is the height above the
datum line); RL: reduced level
(the heights of stations above the
datum line); Dist: distance along
the line containing the TBM
parallel to the datum line.
Figure d shows prole levelling using intermediate sights. Information from this
survey would be recorded in the table as shown.
The RL column (in red) shows the reduced levels of the four stations. Station A is a
benchmark 70.00 m above the datum line. Station B has the RL of 69.34 m (or 71.23
1.89 m) and station C has the RL of 68.80 m (or 71.23 2.43 m).
Sta. BS IS FS HI RL Dist. Notes
A 3.84 83.84 80.00 0 Temp. benchmark
B 1.62 83.84 82.22 10.00
A 1.23 71.23 70.00 0.00 TBM 70.00
B 1.89 71.23 69.34 5.00
C 2.43 71.23 68.80 10.00
D 3.15 71.23 68.08 15.00
1.23 1.89 2.43 3.15
A
B
C
D
5.0 5.0 5.0
70.00
Figure d
The sketch shows a prole level.
All measurements are given in metres.
Use this sketch to:
a state the RL (reduced level) of A
b state the foresight if the backsight
is 2.89 metres
c nd the height of the instrument
d complete the table below.
Continued over page
A 2.89 TBM
B
2.89 2.34
50.00 20.00
A
B
11
WORKEDExample
THINK WRITE
a A is marked as 50.00. This is the
reduced level.
a RL of A = 50.00 m
b Foresight is measurement in the
direction opposite to backsight.
b Foresight = 2.34 m
c Height of instrument
HI = RL of A + 2.89 m
c HI = 50.00 + 2.89
= 52.89 m
d Complete the table. d
A 2.89 52.89 50.00 0.00 TBM
B 2.34 52.89 50.55 20.00
The sketch at right has been made by Sally,
who is surveying from point A to D using
intermediate sights. Use this sketch to
complete the unknowns a to k in the table
below.
A 1.40 a e 0.00 TBM
B 2.00 b f i
C 2.60 c g j
D 3.00 d h k
THINK WRITE
Determine HI (unknowns a to d).
Station A is a benchmark 70.00 m
above the datum line; BS is 1.40;
70.00 + 1.40 = 71.40.
RL of A (unknown e) is benchmark
70.00 m.
RL of B (unknown f) is
71.40 2.00 = 69.4.
RL of C (unknown g) is
71.40 2.60 = 68.8 m.
RL of D (unknown h) is
71.40 3.00 = 68.4 m.
Distances parallel to the datum line
from A to B, C and D (unknowns i, j
and k) are at 5-m intervals.
5.0 5.0 5.0
70.00
A
B
C
D
1.40 2.00 2.60 3.00
1
A 1.40 71.4 70.00 0.00 TBM
B 2.00 71.4 69.4 5.00
C 2.60 71.4 68.8 10.00
D 3.00 71.4 68.4 15.00
2
3
4
5
6
12
WORKEDExample
Levelling: vertical
measurements in relation to
a datum
1 The gure at right shows a sketch of a
prole level. All measurements are given
in metres. Use this sketch to:
a state the RL of: i A ii B
b state the foresight if the backsight is 3.63 m
c nd the height of the instrument
d complete the table below.
2 The table below shows the recordings made by a surveyor.
a State the:
i backsight ii foresight iii height of instrument iv reduced level of A.
b Calculate the RL of B.
c Sketch a prole showing points A and B, and the theodolite positioned between
them. Include the backsight and foresight.
3 The gure at right shows a
sketch made by a surveyor
working from point A to D
using intermediate sights.
Use this sketch to complete
the unknowns a to k in the
table below.
A 3.63 TBM
B
A 3.60 53.60 50.00 20.00 TBM
B 2.80 53.60
A 1.25 a e 0.00 TBM
B 1.75 b f i
C 2.50 c g j
D 3.00 d h k
1. Levelling is the process of determining relative heights of points on the Earth.
2. This reduced level, RL, is the height of a point above the datum line.
remember
6G
50.00
20.0 A
B
3.63 1.94
WORKED
Example
11
WORKED
Example
12
5.00 5.00 5.00
1.25 1.75 2.50 3.00
60.00
A
B
C
D
Topographic maps
A topographic map is a detailed sketch of a portion of the surface of the Earth. These
maps include natural features such as landforms, rivers and forests; and cultural
features such as towns, railway lines and bridges.
Topographic maps are the most frequently employed of all maps, and are used by
police, bush walkers, tourists, the armed forces and emergency teams. They are readily
available from the Department of Natural Resources agencies throughout the State. The
entire State has been divided into regions and all are shown on topographic maps. The
map on page 352 shows the names of regions that have been mapped, drawn to a scale
of 1 : 250 000. Other scales of maps also available are 1 : 10 000, 1 : 25 000, 1 : 31 680,
1 : 50000, 1 : 100 000 and 1 : 1 000 000.
To successfully interpret a topographic map, the reader must have a knowledge of
symbols, scales, contours, grid references, cross-sections and compass bearings.
An extract of a topographic map is shown on pages 356 and 357. This shows a sec-
tion of the Mount Crosby region drawn to a scale of 1 : 25 000. A key is included to
assist with the interpretation of this map (see legend on page 358). Most of the symbols
shown can be grouped under the headings of vegetation, transportation, landform,
urban area features, buildings and land use.
The theodolite
The theodolite is an extremely important device used
in land measurement. Modern electronic theodolites
give accurate measures of angles of elevation and
depression as well as distances to surrounding objects.
Research the history of the development of the theodolite.
Obtain a non-electronic theodolite and investigate its
use. These are still used by some builders and developers.
Investigate the operation of the modern theodolite.
These are quite simple devices to use and should be
operated by each student during the study of this unit.
If you cannot have a demonstration done by a parent
or surveyor in your region, these devices can also be
hired from most large construction hire companies.
The work of the surveyor
Invite a surveyor to visit your class to discuss the
variety of tasks performed in this role. To nd out
more about surveyors who work in your region
use the Spatial Industries Business Association
weblink in your eBookPLUS.
Ask your speaker in advance to demonstrate
the operation of modern surveying devices.
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
Mapping reproduced with permission of The Department of Natural Resources and Mines
(1990 approx.)
INDEX TO SHEETS OF
1:250 000 MAPPING
138 14230' 147 15130'
138
TOPOGRAPHIC MAPPING: Produced on the Australian Map Grid and showing 10 000 metre grid interval, these maps are compiled from aerial photographs
which are coordinated to ground surveys. They are a multicoloured publication showing cultural detail, vegetation, drainage systems and relief. Relief is
represented by means of 50 metres contours and spot heights. The sheet format is 1 of latitude by 130' longitude.
Source: Reproduced with permission of the Department of Lands, Queensland.
14230' 147
MAP DESCRIPTION
15130'
11
14
17
20
23
26
29
11
14
17
20
23
26
29
SC
SD SD
SE 54
SF 54
54
54
SE 55
SF
54 SG
55
SG 55
54 SH SH 55 SH 56
SF 56
SG 56
55
55 SC
SOUTH
AUSTRALIA
NEW SOUTH WALES
N
O
R
T
H
E
R
N
T
E
R
R
I
T
O
R
Y
BOIGU
THURSDAY
ISLAND
DARU MAER
ISLAND
CAPE
YORK
JARDINE RIVER ORFORD BAY
WEIPA
CAPE
WEYMOUTH
AURUKUN COEN
HOLROYD
RUTLAND
PLAINS
HANN RIVER
MORNINGTON
WESTMORE
LAND
BURKETOWN
LAWN HILL DONORS HILL CROYDON GEORGETOWN EINASLEIGH INGHAM
CAMOOWEAL DOBBYN MILLUNGERA GILBERTON CLARKE RIVER TOWNSVILLE AYR
MOUNT ISA CLONCURRY JULIA CREEK RICHMOND HUGHENDEN CHARTERS
TOWERS
BOWEN PROSERPINE
URANDANGI DUCHESS MCKINLAY MANUKA TANGORIN BUCHANAN
MOUNT
COOLON
MACKAY PERCY ISLES
GLENORMISTON BOULIA MACKUNDA WINTON MUTTABURRA GALILEE CLERMONT ST LAWRENCE PORT CLINTON
BEDOURIE MACHATTIE CONNEMARA JUNDAH BLACKALL TAMBO SPRINGSURE BARALABA MONTO BUNDABERG SANDY CAPE
BIRDSVILLE BETOOTA CANTERBURY WINDORAH ADAVALE AUGATHELLA EDDYSTONE TAROOM MUNDUBBERA MARYBOROUGH
BARROLKA EROMANGA QUILPIE CHARLEVILLE MITCHELL ROMA CHINCHILLA GYMPIE
DURHAM
DOWNS
THARGOMINDAH TOOMPINE WYANDRA HOMEBOIN SURAT DALBY IPSWICH BRISBANE
TICKALARA BULLOO EULO CUNNAMULLA DURRANBANDI ST GEORGE GOONDIWINDI WARWICK TWEED HEADS
WIDE BAY
MOUNT
WHELAN
SPRINGVALE BRIGHTON
DOWNS
MAMEROO LONGREACH JERICHO EMERALD DUARINGA ROCKHAMPTON HERON
ISLAND
NORMANTON RED RIVER ATHERTON INNISFAIL
CAPE
VAN DIEMEN
GALBRAITH WALSH MOSSMAN CAIRNS
COOKTOWN
EBAGOOLA CAPE MELVILLE
7 8
11 11 12
11 12 13
15 16
15 16 13
3 4
3 4 1 2 1 2
3 4 3 0 1 2 1 2
3 4 3 1 2 3 4 1 2
3 4 3 1 2 3 4 1 2
1 2
5 6 7 5 6 8
5 6 7 5 5 6 8 7 8
5 6 7 5 5 6 8 7 6 7 8
9 10 11 9 10 12
9 10 11 9 10 12 11 9 12
11 9 10 10 12 11 9 12
13 14 15 13 14 15 16
13 14 15 13 14 15 16 13 14 16
15 15 13 14 15 16 13 14 16
7 8
5
A topographic map is an extremely useful aid in navigating our way over the Earths
surface. To determine the direction that we must travel to reach a certain feature, we
need to understand compass bearings and north points.
A topographic map shows three north points:
true north, magnetic north and grid north. The gure
at right shows how these three points are related for
the Mount Crosby region.
True north is the direction that we would travel to
reach the North Pole. A line in a true north direction
links the North and South Poles.
Magnetic north is the direction in which a compass
needle points because the Earth is a giant magnet.
The direction of magnetic north varies annually and this
variation will always be shown on the map. The legend
from the map shows that magnetic north is 11.1 to the
east of grid north and is gradually changing to the east at a rate of about 0.12 every
5 years. The angle between grid north and magnetic north is the grid magnetic angle.
Vertical grid lines on a topographic map,
then, do not lie in a true northsouth direction;
they lie at an angle to true north. Bearings are
used to describe the direction from grid north.
Grid north has a bearing of 0 for these maps.
The diagram at right shows how the bearing of
Bremer Junction (the point where the two
rivers join) from the sports eld can be found.
A line linking these two features makes an
angle of 48 with the vertical grid line. This
can be measured using a protractor.
The grid bearing of Bremer Junction from
the sports eld is 48 (often written as 048).
More information on bearings, reverse
bearings and compass use is included in Chapter 5, Navigation.
Grid references
Any position on a topographic map can be given by using grid references. Location is
described by using a 4- or 6-gure grid reference, depending upon the degree of pos-
ition accuracy required. Because grid references really refer to a square region rather
than points on a map they are also referred to as area references.
Examine the map on pages 356 and 357.
To describe the grid reference of Finlay Island (just north of Bremer Junction, the
point where the two rivers meet), the following steps are required.
Step 1 The bottom left-hand corner of the grid square containing Finlay Island is
located.
Step 2 The easting (vertical line) forming the left-hand boundary of the grid square is
noted as 85.
Step 3 The northing (horizontal line) forming the bottom boundary of the grid square
is noted as 49.
Step 4 The grid reference for Finlay Island is written as GR 8549.
Note: The letters GR stand for grid reference. A 4-gure grid reference for the
Bundamba Racecourse is GR 8045.
TN
MN
GN
Grid magnetic angle
11.1
Sports
field
Bremer Junction
85
This angle measured by
protractor as 48
A 6-gure grid reference is a more accurate description of position giving one
hundredth the area of a 4-gure reference. Now, the reference is given to the bottom
left-hand corner of the new, smaller area in which the point lies. The centre of
Finlay Island has the 6-gure grid reference determined as follows (see gure
below). The bottom left-hand corner of grid square 8549 is again located. The
easting is now described using three numbers rather than two. An estimate is made
of the location to the nearest tenth of an easting, in this case 85.5. An estimate is
then made of the northing, 49.5. The grid reference is written as easting followed by
northing, omitting decimal points; so the reference is GR 855495. (Note that every
point in this small square has the same six-gure grid reference.) The 6-gure grid
reference of the Bremer Institute of TAFE (right-hand end of the building on the
map on page 356) is GR 814465.
Hint: Use the tenths scale at the base of the map on page 357. Copy the tags
onto the edge of a piece of paper that you can lay on the map.
+
Bedwell Island
Finlay Island
Bremer Junction
85
85.5
49
49.5
On the map on page 357, what feature is at GR 862456?
THINK WRITE
The rst three numbers give an easting of 86.2.
The next three give a northing of 45.6. These
lines intersect to give the area containing the
point labelled Jamboree Park.
The feature at GR 862456 is Jamboree
Park.
Jamboree
Park
86
86.2
45
45.6
13
WORKEDExample
Tenths
Topographic maps
1 A location has a 4-gure grid reference of GR 8446. State its easting and northing.
Use the map on pages 356 and 357 to answer questions 2 to 6.
2 Name the main feature located at GR:
a 851471 b 819473 c 830486.
Using the map on page 357, give the grid bearing of the building near the vehicular ferry
at GR 859475 from Jamboree Park (GR 862456).
THINK WRITE
The two features are located on the map. A line
joining them intersects with the vertical grid line
at 350 (measured using a protractor).
The bearing of the building near the
vehicular ferry from Jamboree Park is
350.
14
WORKEDExample
1. A topographic map is a detailed sketch of a portion of the surface of the Earth.
2. Location is described using 4- or 6-gure grid references, depending on the
accuracy required.
remember
6H
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Trigonometric values
and angles
WORKED
Example
13
3 Give the 6-gure grid reference for:
a the shopping centre south of the Cunningham Highway at Redbank (the far right-
hand corner)
b the boys home at Bremer Junction (where the two rivers meet) (use the most north-
easterly building)
c the bushland native reserve on the Bremer River (use the position of the n in native).
4 The map has been drawn to a scale of 1 : 25 000. Estimate the direct distance from:
a the bridge over the Bremer River, just to the north-east of the bushland native
reserve to the centre of the Bundamba Racecourse.
b the quarry at GR 8248 to the centre of the bridge in a above.
5 From the centre of the oval at GR 819473, give the grid bearing of:
a the centre of the bridge near the bushland native reserve on the Bremer River
b Redbank Industrial Estate (GR 8647).
6 a Ian is ying directly over Bremer Junction (GR 8549) on a grid bearing of 270. Briey
describe what he could expect to see directly below as he continues on this bearing.
b On another ight, he passes GR 803492 and later, GR 821452. On what grid
bearing is he travelling? Could you answer this without a map?
Local features on topographic maps
Activity 1: Identifying local features
Materials required: sketchbook, magnetic compass.
From a point on top of a hill or a tall building in your school, sketch a map of
your local area. Include as many prominent local features on this map as you can in
a radius of about 5 kilometres. Include also on the map the direction of magnetic
north.
Activity 2: Using a topographic map of your locality
Materials required: Sunmap guide to topographic maps, Queensland, Australia,
and magnetic compass.
Obtain a copy of this free guide by contacting the Department of Natural
Resources in Brisbane. The guide will be posted to you, or can be collected
from agencies in Brisbane, Bundaberg, Cairns, Rockhampton, Toowoomba,
Maryborough, Nambour, Roma and Townsville. Use the NRW weblink in your
eBookPLUS to contact the Department of Natural Resources.
Study the section How to use this guide and then select the appropriate
large-scape map that has been drawn to describe the area in which your school
is situated. A large-scale topographic map is one that covers a small area of land
but includes many features. Maps of scales 1 : 25 000 or 1 : 31 680 will sufce
for this exercise. Obtain this map from the Department of Natural Resources.
1 Use it to identify prominent local features in your area, giving the grid
reference of each.
2 Compare the printed topographic map of your local area with the map you drew
in activity 1 above.
3 Locate your sketch point on the topographic map.
4 Determine the distance from the sketch point to prominent features using the
scale shown on the map.
(Continued)
WORKED
Example
14
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Contour maps
Although a map is a 2-dimensional representation of the 3-dimensional surfaces of the
Earth, it can still be used to show landforms such as hills, valleys and cliffs. Major
features such as hilltops will often show heights above sea level. Contour lines are
imaginary lines that join points having the same height above sea level. These lines are
drawn following accurate surveys by air and ground. Contour maps are extremely
useful for hikers and emergency workers.
Engineers who are selecting routes for railway lines and roads require accurate con-
tour maps. These maps are also necessary when an estimate of cut-and-ll requirements
for roadworks or the capacity of a proposed dam is to be calculated.
Contour lines on a map show the height of imaginary lines above sea level. On any
one map, the vertical difference in height between contour lines is constant and is
known as the vertical interval or contour interval. The contour interval on the Mount
Crosby topographic map shown on pages 356 and 357 is 5 metres. Contour lines that
are close together indicate a steep slope and lines far apart indicate a gentle slope.
Lines evenly spaced show a uniform slope.
Topographic maps also show the heights of highest hills in a region. A dot, with
height shown in metres, is used to indicate this. The hill at Collingwood Park (GR 8544
in the map on page 357) has a height of 68 metres.
5 Use the topographic map to determine the grid bearing of prominent features
from the sketch point. Use the grid magnetic angle shown on the map to
convert each grid bearing to a compass bearing. Use a compass to compare the
bearing of each feature taken from the sketch point.
6 Calculate the area in square kilometres covered by the topographic map.
7 Use the topographic map to determine the highest point in your region, and the
bearing of this point from your sketch position. Can you locate this point by
eye?
8 Use the map to determine the steepest hill in the region. Calculate its gradient.
(The section following, on contours, will be of assistance in this calculation.)
Note: You can now view maps of your area using the above website.
Surveying Then and now
Use the NRW weblink in your eBookPLUS to visit the Queensland Government
Department of Natural Resources and Water website. The Mapping and surveying
section includes information showing how modern technology is employed to create
a wide range of maps and images.
This site also includes a Virtual Museum which provides an overview of the
historic development of surveying and mapping in Queensland.
What instruments were used by surveyors prior to the development of todays
modern devices?
How different would the current lifestyle of a surveyor be compared to that of
one at work in the mid 1880s in our state?
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The gure below shows a section of a map with contour intervals of 5 metres. A
hiker walking in a straight line from A to B as shown would go up a hill and down the
other side and then across a comparatively less-steep hill and again down.
A prole, or cross-section, represents the surface of the ground. Proles are drawn
to show clearly the variation in height. Often, different scales are used on the axes,
with the larger scale used on the vertical axis to exaggerate height changes. Vertical
exaggeration is often necessary: if the height variation is only 200 metres and the
prole length spans several kilometres then, without exaggeration, the prole would
appear almost at.
Vertical exaggeration (VE) is dened as:
VE = .
If the vertical scale used is 1 centimetre to 25 metres
and the horizontal scale is 1 :25 000 then:
Vertical exaggeration =
=
=
=
=
VE = 10
A vertical exaggeration of 10 is often used. In mountainous areas, a VE of less than
10 may be adequate.
A B
205
200
195
190
185
160
175
0 25 50 75 100 125 150
Metres
Profile of line AB
175 200 225 250 275 300 325
2
0
0
1
9
5
195
1
9
0
1
9
0
1
8
5
1
8
5
1
7
5
1
8
0
vertical scale
horizontal scale
-------------------------------------
1 cm: 25 m
1 : 25 000
---------------------------
1 cm: 2500 cm
1 cm: 25 000 cm
----------------------------------------
1
2500
------------
1
25 000
----------------
-----------------------------
1
2500
------------
1
25 000
----------------
1
2500
------------
25 000
1
----------------
To construct a cross-section or prole between two points on a map, an edge of a
piece of paper is placed on the line joining the points. The points where the contour
lines are cut by the edge of the paper are marked on the paper. The paper edge is trans-
ferred to the horizontal scale of the prole. A suitable VE is chosen. At each point
where a contour line crosses the paper, the height is plotted. The points are joined with
a smooth line (as seen in the previous gure).
The gradient between two points is calculated by the formula:
Gradient = .
Since this corresponds to the tangent ratio, the angle of fall or rise can be calculated.
If point X is at 870 m and Y is at 720 m and these points are separated by 1600 m, then:
Gradient A to B =
= (by dividing top and bottom by 150)
Rounding the denominator to the nearest whole number gives a gradient of 1 in 11.
Geographers often quote gradients in this manner. A gradient of or 0.093 75 is
equivalent to an angle of 5.4 (using inverse or second function and tangent keys). The
gure below shows the classication of gradients.
difference in heights
horizontal distance
-------------------------------------------------
150
1600
------------
1
10.66
-------------
1
10.66
-------------
1 in 1
45
1 in 2
26.5
1 in 3
18.5
1 in 5
11.5
1 in 10
6
1 in 20
3
1 in 40
1.5
Very steep
Steep
Steep
Steep to
moderate
Moderate Gradual Gentle
Dangerous
to climb
Difficult
to climb
Fill or cut
for roads
Steep
road
Cars
engage
low gear
Limit for
easy
cycling
Very steep
hill for
railway
Classification of gradient
Use the contour map and prole on page 361, to answer the following. (All contours are in
metres).
a What contour interval is used to draw this map?
b What is the greatest height shown?
c What is the smallest height shown?
d A hiker walks from B to A. Briey describe what the hiker would experience.
e Why is vertical exaggeration (VE) used to construct this prole?
THINK WRITE
a The lines are marked 200, 195, 190
etc., so the contour interval must be
5 m.
a The contour interval is 5 m.
b The largest number shown on any line
is 200.
b The greatest height is 200 m.
c The smallest number shown on any line
is 175 m.
c The smallest height is 175 m.
d From B the prole rises and falls twice. d The hiker would climb a hill, then come
down the other side to encounter another
rise and fall.
e Explain the need for vertical
exaggeration.
e Without any exaggeration on the
vertical scale, the prole would appear
almost at.
15
WORKEDExample
A prole shows the vertical scale as 1 cm: 10 m and a horizontal scale of 1 : 10 000. What
vertical exaggeration has been used?
THINK WRITE
Recall the denition for vertical
exaggeration.
VE =
Show the horizontal scale in cm. =
Continued over page
1
vertical scale
horizontal scale
-------------------------------------
2
1 cm: 10 m
1 cm: 10 000 cm
----------------------------------------
16
WORKEDExample
THINK WRITE
Convert vertical scale to cm. VE =
Convert ratios to fractions and divide to
obtain VE.
=
= 10
3
1 cm: 1000 cm
1 cm: 10 000 cm
----------------------------------------
4
1
1000
------------
1
10 000
----------------
Point A is at 1250 metres and point B is at 1160 metres further down the hill. The two
points are separated by a horizontal distance of 900 metres.
a Calculate the gradient.
b Describe the nature of this gradient using the classication in the gure on page 362.
c Calculate the angle of this gradient.
THINK WRITE
a Recall the formula for gradient. a Gradient AB =
Substitute values into the formula. =
=
=
b A gradient of 1 in 10 is described as
moderate (see gure on page 362).
b Gradient of 1 in 10 is moderate.
c To nd the angle which has a tangent
ratio, convert to a decimal (that is,
0.1) and use the inverse key.
c tan a =
= 0.1
a = 5.7
1
horizontal distance
-------------------------------------------------
2
1250 1160
900
------------------------------
90
900
---------
1
10
------
1
10
------
1
10
------
17
WORKEDExample
1. Contour lines are imaginary lines that join points having the same height above
sea level.
2. Vertical exaggeration (VE) is dened as:
VE = .
vertical scale
horizontal scale
-------------------------------------
remember
Contour maps
1 The gure below shows a contour map of a region. All contours are in metres.
a What contour interval is used to draw this map?
b What is the greatest height shown?
c What is the smallest height shown?
d A hiker walks from A to B. Briey describe what the hiker would experience.
e Construct a prole of A to B. Use a horizontal scale of 10 cm:1 km and a vertical
scale of 1 cm: 20 m.
f Calculate the vertical exaggeration in e.
2 Use the topographic map on page 357 to state the height of the hill at GR:
a 8446 (the hill with the tower) b 8544 (the hill at Collingwood Park).
3 The contour map on page 366 shows a region of the coastline. A river enters the sea.
The river and the coastline do not have a contour gure on them.
a What contour interval is used on this map?
b What is the distance from X to Y?
c Use the scaled frame at the bottom of the gure to draw a cross-section from X to Y.
d Find the vertical exaggeration for this cross-section. (Note that 20 mm represents
100 m for the vertical scale.)
e Estimate the grid bearing of X from Y using a protractor.
f Do you think it would be possible to see X from Y?
4 Point P is at 2147 m and Q is at 3527 m. They are separated by a horizontal distance of
4.7 kilometres. Calculate:
a the gradient b the angle of this gradient.
How would you describe this gradient?
5 Convert the following gradients to angles.
a 1 in 1 b 1 in 3 c 10 m in 1000 m
d e 85 m in 1640 m
6 Use the map on page 366 to determine the angle of rise from A to B.
6I
WORKED
Example
15, 16
60
70
80
70
60
5
0
0 km 0.5 km 1.0 km
A
B
WORKED
Example
17
eBookplus eBookplus
Digital doc:
SkillSHEET 6.3
Trigonometric
values and angles
1
50
------
Local contours
Materials required: local topographic map.
1 Use the topographic map for your area to nd:
a the highest point in the region
b the steepest hill in the region.
2 Use the topographic map for your local area to construct a cross-section
between two prominent landmarks.
3 Use the topographic map to determine the gradient of the steepest hill at its
steepest section.
A
B
Y
X
Y
X
N
2
0
40
4
0
2
0
2
0
4
0
6
0
8
0
2
0
6
0
6
0
8
0
8
0
120
SL
metres
120
100 100
80 80
60 60
40 40
20 20
SL
metres
SCALE 1:100 000
Contour interval: 20 metres
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Cadastral maps and site plans
A cadastral map is a map that shows the boundaries of blocks of land in a survey plan
(see map below). The names of owners of allotments must be accurately recorded and
each lot must be well dened. Queensland has been divided into counties and then par-
ishes. Parishes are further subdivided into portions. Further subdivisions ultimately allo-
cate a lot number to each block of land. Surveyors plans must be extremely accurate
for these maps.
A cadastral surveyors equipment includes:
1. a theodolite for reading horizontal and vertical angles
2. a level to provide a horizontal reference plane to determine height differences
(rotating laser beams are often used for this purpose)
3. steel tape to measure distances (these tapes are regularly checked for accuracy, and
corrections are made to take temperature variations into account)
4. laser beam distance measuring equipment.
Data collected on-site can be processed by computer to produce extremely accurate
maps.
Surveyors and engineers require key
pieces of information in the initial stages
of development of a new town or suburb.
The height above sea level and latitude
and longitude of a certain location are
important starting points. Information
such as this is retained by the Department
of Natural Resources and is referred to as
survey control information. Thousands of
marks have been placed over Queensland
by surveyors as permanent reference
points. These permanent survey marks
(PSMs) are most commonly circular bronze plaques, 10 cm in diameter and are set in
concrete, level with the surrounding soil. The photograph above shows an example of a
permanent survey mark. Alternatively, long rods and pickets are used in unstable soil
and sand.
Each mark forms part of an expanding network of survey information. All three
levels of government contribute to this from time to time. The Main Roads Department
109
110
187
189
30.0
30.0
23.0
23.0
1
5
.
0
1
3
.
2
1
9
2
1
.
0
2
1
.
0
2
7
.
4
9
9
3
8
.
6
0
7
3
8
.
9
1
4
2
1
.
0
2
1
.
0
630 m
2
796 m
2
7.219
5.0
or Railways Department may place permanent survey marks when extending roads and
railway lines. Local governments may place marks when installing drainage and
sewerage facilities.
Recent technology allows points to be positioned on the Earths surface using
orbiting satellites. A repeated signal monitored from the passing satellite can give the
height and position of a point to within a few metres.
1 The cadastral map on page 367 has several lots of land showing areas and dimensions
in metres.
a Give the area of Lot 109.
b Give the dimensions (length and breadth) of Lot 187.
c The area of Lot 187 is not shown. Calculate its area.
d What scale has been used to produce this plan?
e Draw a 1 : 500 plan of Lot 109.
f Before the metric system was introduced, the area of house blocks was measured in
perches (1 perch = 25.3 m
2
).
i A block of 42 perches is advertised for sale at $61 500. Convert the area to
square metres and nd the price per square metre.
ii A lot is 850 m
2
and another is 28 perches. Which is the larger lot?
The gure on page 367 is a cadastral map and has a number of blocks of land that are
labelled.
a Give the area of Lot 189.
b What are the dimensions of Lot 109?
c Is the described area for Lot 109 correct? Give a reason for your answer.
THINK WRITE
a The area is indicated on the map.
a 796 m
2
b The dimensions are 21 m 30 m. b 21 30 m
c Lot 109 is a rectangle, and the area of a
rectangle is length width.
21 30 = 630 m
2
.
c Yes.
Area = 21 30
= 630 m
2
18
WORKEDExample
A cadastral map shows boundaries of blocks of land in a survey plan.
remember
6J
WORKED
Example
18
g Lot 109 is for sale at $59 850 and Lot 189 is for sale at $82 000.
i Which has the lower cost per square metre?
ii What features of a block of land might attract a purchaser even though its dollar
value per square metre may be higher than surrounding blocks?
(Comparing Lots 109 and 189 can assist in your answer, but include as many
features as possible.)
2 The gure below shows the site plan for Lot 8 on Gurner Street. All dimensions given
are in millimetres.
a Find the area of Lot 8 in square metres and perches.
b The shaded sketch shows the area of the proposed dwelling to be erected on this lot.
What is the area of the proposed dwelling?
c What is the distance from the rear of the dwelling to the back boundary?
d What fraction of the land does the proposed dwelling occupy?
e The dashed lines are contour lines (lines of height). All points along the 31 800 line
are 31 800 mm above sea level.
i Is the block rising or falling as I walk from the Gurner Street entrance to the rear
of the block?
ii What is the difference in height from the front boundary to the rear?
iii Calculate the angle of rise or fall from the front to the rear.
Survey maps: old and new
Compare survey maps
Obtain a number of survey maps from your area. It will be possible to nd survey
maps that were drawn well over 100 years ago, particularly if you live in a well-
established town. Contact your local council and ask parents and relatives for
maps. Many people keep copies of survey maps when purchasing property.
Organise a wall display showing the survey maps in chronological order of
production. Use a recent map to locate a piece of land in your area.
Compare features noted in past maps with present-day maps.
LOT 8
75 000
SET
OUT
POINT 7 200 11 500
75 000
2
8

0
0
0
2
8

0
0
0
3
0

3
0
0
3
0

6
0
0
3
0

9
0
0
3
1

2
0
0
3
1

5
0
0
3
1

8
0
0
3
2

1
0
0
1
4

4
0
0
1

0
0
0
N
R.L.
G
U
R
N
E
R
S
T
R
E
E
T
31.400
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Orienteering
Orienteering is a physically active and enjoyable pastime that requires map and com-
pass reading skills and an ability to estimate distances. The aim of orienteering is to
complete a given course that has been planned and mapped. There are many check-
points in an orienteering course with competitors visiting each.
The following exercise is an example of a simple orienteering course conducted in a
park. The directions that are listed below could be either:
1. given to each participant prior to commencing the course, or
2. left at each checkpoint.
1 Obtain a Permanent Mark Sketch Plan from the Department of Natural
Resources for your area. This shows the exact location of individual permanent
survey marks. Use this plan to locate several of these features on the ground.
2 Contact your local government authority and obtain a ood-risk map for your
area. Note local regions that are subject to ooding.
3 Obtain the site and drainage plans for the school from either the school
ofce or the local authority. Locate features marked on these plans. Check
the plans for accuracy by comparing positions of objects drawn with their
actual position.
Mapping from air and space
Orthophoto maps
Land feature or orthophoto maps show the Earths natural and man-made features
and are based on an aerial photograph overlaid with contour information and major
road and site names. They are of great use in ood control and water supply.
Investigate the method of production and applications of these maps. A brochure
describing these maps is available from the Department of Natural Resources.
Obtain an orthophoto map of your area and identify key features.
Remotely sensed imagery
Remotely sensed imagery means that an image has been collected remotely; that is,
at a distance. The Landsat Satellite orbits Earth at an altitude of 705 km and
records scenes that measure 185 km by 185 km.
1 What information is collected by Landsat?
2 How is this information interpreted?
3 How is the imagery from Landsat used?
Brochures and posters showing examples of remotely sensed imagery can be
obtained from the Department of Natural Resources.
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Use the compass rose or a protractor and your ruler to follow this course in the gure
shown above.
1. Find the point in the park labelled Start.
2. Proceed on a bearing of 090 for 60 m.
3. Follow 020 for 103 m.
4. Now move 94 m on 277.
5. Proceed along 186 for 62 m.
6. Now follow 094 for 95 m.
If you followed the course correctly you should be at the barbeque!
The bearings used in orienteering exercises are magnetic to save competitors the
time of converting between magnetic and true.
0
Scale 1 cm: 10 m
3
3
0
3
0
0
2
7
0
2
4
0
2
1
0
1 8 0
1
5
0
1
2
0
9
0
6
0
3
0
START
P
Statue
Park entry
Fountain
Kiosk
Picnic
table
Bird bath
Barbeque
Car park
Large tree
North
Orienteering
1 Use the gure on the previous page to nd the
bearing of:
a the kiosk from the large tree
b the car park from the statue
c the bird bath from the park entry
d the fountain from the start.
2 Find the distance separating the landmarks listed in
questions a to d above.
3 Devise a set of 8 instructions, each a distance and a
bearing, that would have you start and nish at the
bird bath. Swap your set of instructions with another
student and follow each others course.
Planning an orienteering course
Materials: compass, paper, pen.
In your school yard or nearby park, design an orienteering course for other class
members to follow. The instructions can be either:
1 listed as a complete series of instructions (distance to travel and bearing) and
handed to the competitors before starting, or
2 posted at each checkpoint along the course.
To add interest, a letter of a word could be at each checkpoint and competitors
could be required to unjumble the word on nishing the course.
Notes
1. The Queensland Orienteering Association welcomes new members and
conducts regular events. To nd out more about the Queensland Orienteering
Association use the Orienteering weblink in your eBookPLUS.
2. You can now produce your own high quality colour orienteering map of any
area where you would like to set up a course using the latest version of OCAD.
The aim of orienteering is to complete a given course that has been mapped.
remember
6K
eBookplus eBookplus
Digital doc:
WorkSHEET 6.2
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Area of triangle
The triangle is a gure regularly used in surveying techniques. Its area can be found
by:
1. using base and perpendicular height
Area = base perpendicular height
2. using 2 side lengths and the angle between them
Area = side 1 side 2 sin (angle between sides 1 and 2)
3. Herons formula
Area =
where a, b and c are the sides and the semi-perimeter, S, is given by
S = (a + b + c)
Any polygon can be divided into a number of triangles.
Surveying
Surveyors often set up a survey line when surveying an area. Perpendicular
distances to surrounding features are known as offsets.
The presence of obstacles such as rivers, swamps, hills or dwellings can result in
the survey line being interrupted. Obstacles can be bypassed using the offset and
triangulation methods.
Plane table surveying makes use of a horizontal table. Three plane table surveying
methods are:
1. intersection or triangulation
2. radiation, and
3. traversing.
Topographic maps
A topographic map is a detailed sketch of a portion of the surface of the Earth and
includes natural and articial features.
These maps have grid lines showing the direction of grid north.
True north is the direction of the North Pole and magnetic north is the direction in
which a compass points.
Magnetic north varies slightly annually and its relationship to grid and true north is
shown on topographic maps.
Contour lines are imaginary lines joining points having the same height above sea
level.
A prole or cross-section shows the surface of the Earth between two points.
Vertical exaggeration is often used when drawing proles.
Vertical exaggeration =
The gradient between two points =
This corresponds to the tangent ratio and can be given as a ratio or an angle.
Cadastral maps
A cadastral map shows the boundaries of blocks of land.
summary
1
2
---
1
2
---
S S a ( ) S b ( ) S c ( )
1
2
---
vertical scale
horizontal scale
-------------------------------------
horizontal difference
--------------------------------------------------
1 Find the area of the diagrams below, to the nearest square metre.
a b c
d e
2 The gure below shows a paddock drawn to a scale of 1 : 1000. Find the area of the
paddock, to the nearest 0.1 hectare.
CHAPTER
review
6A
12 m
21 m
18 m
32 m
35
23 m
45 m
52 m
37.5 m
53 m
71 m
73 m
82 m
102 m
117 m
29
47
34
6B
Scale 1:1000
3 A eld sketch is shown at right,
not to scale. All gures are in metres.
a Find the distance:
i AB ii CZ iii AZ
iv CD v ZY vi XY.
b Find the area of:
i LACZ ii LBEY
iii gure EYZC iv gure AXWB.
4 a Show diagramatically how XY in the gure at right could
be found using the offset method.
b In the gure at right, show how AB, the distance across
a river, could be determined using triangulation.
5 The following diagram shows a map resulting from a plane table survey using triangulation
(1 : 1000 scale).
Find:
a the length of survey line AB
b the bearing of:
i W from A ii V from A iii W from B iv V from B v B from A
c the area of quadrilateral AWBV to the nearest 100 m
2
d the perimeter of AWBV (to the nearest 10 metres).
6C
B
A
130
150
W
C
F
E
45
73
Y
108
49
36 52
56
X D
Z
6D
Pond
X
Y
A
B
River
6E
W
V
A B
N
6 The gure below shows a sketch drawn by the plane table radiation method drawn to a scale
of 1 : 1000.
Find:
a the length of:
i AE ii AB iii AC iv AD v EC
b the bearing of:
i C from A ii D from A iii E from A
c the area of LABC to the nearest 100 m
2
.
7 The table shows the recordings made by a surveyor.
a State the:
i backsight ii foresight iii height of instrument iv reduced level of A.
b Calculate the RL of B.
c Sketch a prole showing points A and B, and the theodolite positioned between them.
Include the backsight and foresight.
8 a With reference to the Mount Crosby topographic map (see pages 356 and 357), what
feature is located at:
i GR 868473? ii GR 855495?
b Use the scale shown to estimate the distance from Bremer Junction to the centre of the
shopping centre south of the Cunningham Highway (near Redbank). Scale is 1 : 25 000.
c A plane ies directly over the route in b above. On what grid bearing does it y?
9 Point A is at 1620 m and Point B is at 1870 m. They are separated by a horizontal distance
1250 m. Calculate:
a the height difference
b the gradient
c the angle of this gradient. Include a description using the classication on page 362.
A 3.90 53.60 50.00 20.00 TBM
B 2.70 53.60
6F
A
C
D
E
B
N
6G
6H
6I
10 Convert each of the following gradients to angles.
a 1 in 1 b 1 in 2
c 10 m in 500 m d
e 80 m in 630 m
11 A prole shows the vertical scale as 1 cm: 10 m and a horizontal scale of 1 : 10 000. What
vertical exaggeration has been used?
12 Refer to the contour map below.
a Estimate the height of A.
b What is the contour interval?
c Draw a prole from Y to X. Use a vertical exaggeration of 20.
13 Use the gure on page 367 to:
a nd the area of Lot 110
b draw a 1 : 500 plan of Lot 110.
6I
1
20
------
6I
6I
A
B
Y
X
N
2
0
2
0
4
0
6
0
8
0
8
0
6
0
4
0
1
0
0
1
0
0
6
0
8
0
1
0
0
1
2
0
4
0
2 2 4
Kilometres
6 8 10 1 0
SCALE 1:100 000
6J
Digital doc:
Test Yourself
Chapter 6
eBookplus eBookplus
Digital docs
Spreadsheet 063: Investigate perimeter and area
(page 317)
SkillSHEET 6.1: Practise using Pythagoras
theorem (page 318)
Spreadsheet 054: Investigate trigonometric ratios
(page 318)
SkillSHEET 6.2: Practise calculating areas of
triangles using Herons formula and the sine rule
(page 322)
Digital docs
SkillSHEET 6.2: Practise calculating areas of
triangles using Herons formula and the sine rule
(page 324)
Spreadsheet 063: Investigate perimeter and area
(page 324)
Spreadsheet 047: Investigate map scale 1
(page 324)
(page 324)
Digital doc
WorkSHEET 6.1: Calculate perimeter, area of
triangles and composite shapes using different
methods, use Pythagoras theorem and determine
bearings (page 336)
Tutorial
Int-0474: Watch how to make triangulation and
similarity calculations (page 334)
Digital docs
(page 345)
(page 345)
Digital doc
SkillSHEET 6.3: Practise nding trigonometric
values and angles (page 358)
Digital doc
SkillSHEET 6.3: Practise nding trigonometric
values and angles (page 365)
Digital doc
WorkSHEET 6.2: Make land measurement
calculations including survey measurements,
using scales, calculating and converting gradients
to angles (page 372)
Digital doc
6A Perimeters and areas of triangles
6B Perimeters and areas of polygons
6D Surveying around obstacles
WE7
6F Plane table surveying:
6H Topographic maps
6I Contour maps
6K Orienteering
Chapter review
www.jacplus.com.au
In this
chapter
7A Graphs of linear
inequations
7B Solutions of simultaneous
linear equations
7C Graphs of simultaneous
linear inequations
7D Graphs of systems of linear
inequations
7E Maximising and
minimising linear functions
7F Solving linear
programming problems
7G Further applications of
linear programming

7
syllabus
reference

Elective topic

Operations research

linear programming

Linear
programming


380


What is linear programming?

Linear programming

was developed during the late 1940s to assist in the organisation
of military supplies. Today it is extensively used in elds such as business, engineering,
industry and social sciences.
Linear programming is a mathematical technique used to solve real-life situations in
which a particular quantity is to be maximised or minimised for example time,
money, prot subject to given constraints or restrictions. A specic example would
be maximising the prot a company makes, subject to:
1. the number of employees
2. the number of hours they can work
3. the cost of producing goods
and so on.

Linear

implies that the restrictions and the quantity to be maximised or minimised
follow linear patterns.

Programming

means that it follows a systematic plan.
The problem at the bottom of this page is an example of a linear programming
problem.

1

Consider the equation

y

=

4

x

6. Calculate the value of

y

when:

a

x

=

2

b

x

=

0

c

x

=

5.

2

Consider the equation 2

x

3

y

+

12

=

0.

a

Determine the value of

x

when

y

=

0.

b

Determine the value of

y

when

x

=

0.

3

Rearrange the following equations to make

y

the subject of the formula.

a

5

x

y

=

6

b

6

x

+

5

y

=

10

c

7

x

+

2

y

+

5

=

0

4

Describe the graph of each of the following lines.

a

x

=

3

b

y

=

6

c

x

=

y

5

Give the equation of:

a

the

x

-axis

b

the

y

-axis.

6

Give possible integer values which would satisfy each of the following relationships.

a

x

>

7

b

x

4

c

3

x

<

10

Problem

A local manufacturer makes two types of deck chair: the deluxe and the
standard. Each chair goes through two processes: assembling and
nishing. It takes 4 hours to assemble each deluxe chair and 3 hours
for each standard chair. The nishing
process takes 2 hours for each chair. The
prot on each deluxe chair is $15 and on
each standard chair, $12. If employees spend


C h a p t e r 7 L i n e a r p r o g r a m m i n g

381

at most 48 hours on assembling and 28 hours on nishing each week, how many chairs
of each type should be made weekly to maximise the manufacturers prot?

Mathematical formulation of the problem

1. Dene the variables:
(a) Let

d

represent the number of deluxe chairs.
(b) Let

s

represent the number of standard chairs.
(c) Let

P

represent the prot.
2. Write the constraints as inequations in terms of the variables:
4

d

+

3

s

48 time available for assembling chairs
2

d

+

2

s

28 time available for nishing chairs

d

0 Since the number of chairs can not be negative,

s

0

}

the variables

d

and

s

must be positive or zero.
3. Determine what must be maximised: the maximum prot needs to be obtained.
4. Write the function that needs to be maximised in terms of the variables:

P

=

15

d

+

12

s

From this point the problem can be solved by graphical methods, which we use later
in the chapter.
To solve linear programming problems, it is important to be able to sketch graphs of
inequations and determine points of intersection between graphs. Once we understand
this, we can then begin to maximise and minimise linear functions and start to solve
linear programming problems like this one.

Graphs of linear inequations

When a straight line is drawn on a plane, it divides the plane into three sets of points:
the points above the line, on the line and below the line.
The diagram on the right shows the graph of

y

=

x

. The points
on the line itself satisfy the equation

y

=

x

. The region above the
line represents the points that satisfy the inequation

y

>

x

, while
the region below the line represents the points that satisfy the
inequation

y

<

x

.
To indicate which part of the plane we want, shading is
used.

Note:

Throughout this chapter the following format will
be used:
1. The area that is required will be shaded.
2. The area that is not required will remain unshaded.
To sketch the graph of an inequation, the following algorithm can be used:
1. For the boundary, replace the inequality sign with an equals sign and sketch the
graph of the equation thus formed.
(a) If the inequality sign was

<

or

>

, use a dotted line (to indicate that the points on
the line itself are not included).
(b) If the inequality sign was

or

, use a solid line (to indicate that the points on
the line are included in the region required).
2. To determine the side of the line where the required region lies:
(a) Choose any point on one side of the line (a test point).
(b) Substitute the coordinates of the test point into the inequation.
x
y
y
=
x
y<x
y>x


382


(c) If the result is a true statement, the point that was chosen belongs to the required
region.
(d) If the result is not a true statement, the selected point belongs to the region that
is not required.
3. Shade the region that is required.
4. Add the legend to your graph: Region required
The following worked examples illustrate this concept.
Sketch the graph of:
a y 0 b x < 6
and shade the required region.
THINK WRITE
a Rule a labelled set of axes including the origin. a
For the boundary, replace with = and sketch the
equation y = 0 (this is a horizontal line which
coincides with the x-axis). Since the inequation
contains , a solid line must be drawn.
Boundary equation is y = 0.
Choose a test point on the y-axis, say y = 6. Test point: (0, 6)
Substitute 6 into y 0 to see if it satises
the inequation; that is, is 6 0? (Correct.)
Is 6 0? Yes
Since the inequation is correct, shade the
side of the line that contains the
point.
Add the legend to the graph, indicating that
the region required is shaded.
b Rule a labelled set of axes, including the origin. b
Sketch the equation x = 6 (a vertical line that
passes through 6 on the x-axis). Since the
inequation contains <, a broken line must be
drawn.
Boundary equation is x = 6.
Choose a test point on the x-axis, say x = 0. Test point: (0, 0)
Is 0 < 6? Yes Substitute 0 into x < 6 to see if it satises the
inequation; that is, is 0 < 6? (Correct.)
Since the inequation is correct, shade the side of
the line that contains the point.
Add the legend.
1
2
3
4
5
0
x
y
Region
required
6
1
2
3
0
x
y
6
Region
required
4
5
6
1
WORKEDExample
C h a p t e r 7 L i n e a r p r o g r a m m i n g 383
The graph in part a in the previous worked example is a closed half-plane dened by
y 0. It is called closed since it includes the equation y = 0. It includes the points on
or above the line y = 0.
The graph in part b is an open half-plane dened by x < 6 (open since it excludes
the equation x = 6). It is the set of points to the left of the line x = 6.
Sometimes the inequation has to be transposed before sketching to make x (or y) the
subject. While transposing, keep in mind that multiplying or dividing both sides of an
inequation by a negative number changes the direction of the sign of inequality to its
opposite.
In the following worked example, we consider the graphing of linear inequations with
two variables, x and y.
Sketch the graph of y + 3 < 5 and shade the required region.
THINK WRITE
To make y the subject, subtract 3 from both
sides of the inequation.
y + 3 < 5
y + 3 3 < 5 3
y < 2
Multiply both sides of the inequation by 1. 1 y < 1 2
y > 2
Change the direction of the inequality sign.
Rule a labelled set of axes, including the origin.
For the boundary, sketch the equation y = 2
(a horizontal line, passing through 2 on the
y-axis). Since the inequation contains >,
a broken line must be drawn.
Boundary equation is y = 2.
Choose a point on the y-axis, say y = 0. Test point: (0, 0)
Is 0 > 2? Yes
Substitute 0 into y + 3 < 5 to see if it satises
the inequation; that is, is 0 > 2? (Correct.)
Since the inequation is correct, shade the side
of the line that contains the point.
Add the legend.
1
2
3
4
5
6
0
2
x
y
Region
required
7
8
9
2
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 3
int-0482
Sketch the graph of the inequation y 4x 8 and shade the required region.
Continued over page
THINK WRITE
Replace with = to nd the
x- and y-intercepts of the boundary.
Boundary equation is
y 4x = 8.
1
3
WORKEDExample
Linear inequations can be sketched with the aid of a graphics calculator. For instance,
the graph of the inequation in Worked example 3 can be graphed as follows.
First transpose the inequation to make y the subject: y 4x + 8.
1. To graph an inequation, press:
5: GRAPH
(TYPE)
(
).
(Y ).
Y1 4 X + 8.
Then press .
THINK WRITE
To determine the x-intercept, let y = 0. x-intercept: y = 0
0 4x = 8
4x = 8
x = 2 (2, 0)
To determine the y-intercept, let x = 0. y-intercept: x = 0
y 4 0 = 8
y = 8 (0, 8)
Rule a labelled set of axes, including
the origin.
To sketch the graph of the equation
y 4x = 8, mark the x- and y-intercepts
on the set of axes and join them with
the straight line. Since the inequation
contains , a solid line must be drawn.
To determine the region required,
choose a test point on one side of the
line, say (0, 0).
Substitute the coordinates of the test
point into the inequation to see if (0, 0)
satises it; that is, is 0 8?
Since the inequation is correct, shade
the side of the line that contains the
point.
Add the legend.
2
3
4
5
2
0
8
x
y
Test point: (0, 0)
Substitute into y 4x 8
0 4 0 8?
Is 0 8? Yes
6
7
8
9
2
0
8
x
y
Region
required
Graphics Calculator
Graphics Calculator
tip!
tip!
Graphing linear inequations
MENU
F3
F6
F4
EXE
2. To alter the viewing window, press
(V-WIN).
Enter the settings as shown, and
then press .
3. To draw the graph, press (DRAW).
The graph appears, with the required
region shaded.
To graph an inequation, press:
HOME c
In the function area at the bottom of the
screen, press the Clear . button to
delete f1(x) = .
y 4 x + 8.
Then press ENTER .
The graph appears, with the required region
shaded.
SHIFT
F3
EXE
F6
1. The graph of an inequation containing or is a closed half-plane; or
indicates that a solid line is drawn and it is included in the required
region.
2. The graph of an inequation containing < or > is the open half-plane; < or >
indicates that a dotted line is drawn and it is excluded from the region
required.
3. The required region is shaded; this is stated by adding the legend to the graph:
Region required
4. Before sketching the inequation, it must be transposed to make the pronumeral
the subject.
5. Multiplying or dividing both sides of an inequation by a negative number
changes the direction of the sign of inequality to its opposite.
6. The origin (0, 0) is the most convenient test point to use when determining the
region required, unless the straight line passes through it.
remember
1 Sketch graphs to represent the following inequations. Shade the required region.
2 Sketch graphs to represent the following inequations. Shade the required region.
3
The expression y > 8 is best represented by the following graph:
4 Sketch graphs to represent these inequations. Shade the required region.
5
The expression y 2x is best represented by the following graph:
6
The expression 12x + 10y 60 < 0 is best represented by the following graph:
a y 2 b y 0 c y > 1 d y < 6
e y > 0 f y 6 g x 4 h x 0
i x > 2 j x < 1 k x > 0 l x 1
a x < 7 b y 2 c x > 3 d x 5
e y > 4 f y 3 g x + 2 > 0 h y 3 0
i x 8 < 0 j x + 4 0 k y 2 < 3 l y 6 2
A B C D E
a y 2x 4 b y + x 1 c 4x + 4y 16
d y x 0 e y x + 2 f y > 2x 14
g y < 6x 24 h y 7x + 21 i x + y > 0
j y x + 7 k x > y 2 l y > 12x 24
m 3y x + 12 n 2y 4x + 6 o x y < 10
p y < x 4 q 2y > 4x 8 r 4x 2y 8
s 2x y > 1 t y x 4 < 0 u y + 2x 6 0
v 2y + 8x + 4 0 w 9x + 9y + 9 0 x 5x + 2y 10 > 0
A B C D E
A B C D E
7A
WORKED
Example
1
eBookplus eBookplus
Digital doc:
SkillSHEET 7.1
Solving linear
inequations
Interactivity:
Sketching inequations
int-0083
WORKED
Example
2
multiple choice
0
x
y
8
Region required
0 8
x
y
Region
required
0
x
y
8
Region required
0
x
y
8
Region required
0
x
y
8
Region required
WORKED
Example
3
multiple choice
0
x
y
Region required
0 x
y
Region required
0 x
y
Region required
0 x
y
Region required
0
Region required
x
y
multiple choice
0
x
y
5
6
Region required
0
x
y
6
5
Region required
0
x
y
5
6
Region required
0
x
y
6
Region required
5
0
x
y
6
5
Region required
Solutions of simultaneous linear
equations
In this section we revise how to solve simultaneous linear equations.
Recall the following facts:
1. Equations that are valid at the same time are called simultaneous equations.
2. The graphical solution to the pair of simultaneous linear equations is given by the
point of intersection of the straight lines representing these equations.
3. The coordinates of the point of intersection can be read from the graph. The
accuracy of the solution depends to a very large extent on the accuracy of the graph.
Hence, the solution should be veried using algebraic methods.
4. To solve simultaneous equations algebraically, either elimination or substitution
methods are used.
Sketch the graphs of, and solve, the following pair of simultaneous linear equations.
2x 3y = 6
x = 3y 6
THINK WRITE
Find the intercepts of 2x 3y = 6.
(a) Write the equation. 2x 3y = 6
(b) To determine the x-intercept, let y = 0. x-intercept: y = 0
2x 0 = 6
2x = 6
x = 3 (3, 0)
(c) To determine the y-intercept, let x = 0. y-intercept: x = 0
0 3y = 6
3y = 6
y = 2 (0, 2)
Find the intercepts of x = 3y 6.
(a) Write the equation. x = 3y 6
(b) To determine the x-intercept, let y = 0. x-intercept: y = 0
x = 0 6
x = 6 (6, 0)
(c) To determine the y-intercept, let x = 0. y-intercept: x = 0
0 = 3y 6
6 = 3y
y = 2 (0, 2)
Sketch the graphs of 2x 3y = 6 and
x = 3y 6. The solution is the point at which the
two graphs intersect.
Verify the graphical solution obtained algebraically
by substituting x = 3y 6 into 2x 3y = 6.
2(3y 6) 3y = 6
Continued over page
1
2
3
x
y
(12, 6)
0
12
2
6
3 6
2
4
4
WORKEDExample
A calculator can be used to nd a solution for Worked example 4.
The Casio can be used to show a graphical
solution.
1. To solve the simultaneous equations
graphically press:
5: GRAPH.
Rearrange the equations to make y the subject
of the formula rst, then complete the entry
lines as:
Y1 = (2 3)X 2
Y2 = (1 3)X + 2
Press after each entry.
2. To adjust the window to accommodate the
graphs, press:
(V-WIN).
Set the elds as shown and then press .
3. To nd the coordinates of the point of
intersection of these two lines, press:
(DRAW)
(G-SLV)
(ISCT).
The coordinates of the point of intersection
will be displayed.
THINK WRITE
Solve for y. 6y 12 3y = 6
3y 12 = 6
3y = 6 + 12
= 18
y = 6
Substitute y = 6 into either of the two equations to
nd the value of x. Choose x = 3y 6.
x = 3 6 6
= 18 6
x = 12
The solution set to the simultaneous equations
2x 3y = 6 and x = 3y 6 is (12, 6).
The solution is (12, 6).
5
6
7
Graphics Calculator
Graphics Calculator
tip!
tip!
Solving simultaneous linear
equations
MENU
EXE
SHIFT
F3
EXE
F6
SHIFT F5
F5
For TI-Nspire CAS
This calculator can be used to solve simultaneous
equations both algebraically and graphically.
algebraically, press:
HOME c
1 Calculator 1
MENU b
3: Algebra 3
1: Solve 1.
solve(2x 3y = 6 and x = 3y 6, x).
Then press ENTER .
graphically, press:
HOME c
3. To adjust the window settings to
accommodate the graphs, press:
MENU b
4: Window 4
Set the elds as shown and then select OK.
4. Rearrange the equations to make y the
subject and then complete the entry lines as:
.
Press ENTER after each entry.
The two graphs will appear on the screen.
5. To nd the coordinates of the point of
intersection of these two lines, press:
MENU b
6: Points & Lines 6
Use the NavPad to move the cursor close to
the point of intersection. A pointing nger
will appear . Press Click x twice and the
coordinates of this point will appear.
f 1 x ( )
2
3
--- x 2 =
f 2 x ( )
1
3
--- x 2 + =
Solutions of simultaneous
linear equations
1 Sketch the graphs, and solve the following pairs of simultaneous equations. (Use an
appropriate method to verify your solutions algebraically.) You may wish to use a
graphics calculator.
2
For the simultaneous equations
y + x = 7
x + y = 2
the gure showing the correct graphs and solution is:
a x = 4
x + y = 2
b y = 1
x y = 1
c y = 1
x y = 5
d x + y = 7
y = 3x 1
e 2x + 2y = 12
y = 2x 3
f x y = 10
y = 3x + 2
g 2x + y = 22
x = 3y 3
h x + 3y = 15
x = 7y + 1
i 3x y = 9
x = y + 1
j x y = 1
x + y = 1
k x + y = 8
x y = 1
l 2x + y = 15
3x + y = 17
m 5x 2y = 28
6x + 2y = 16
n 2x 4y = 4
x + 3y = 6
o x + y = 7
5x + 2y = 7
p 2x + y = 1
4x + 3y = 0
q 3x + y = 5
12x + 8y = 7
r 2x + 3y = 7
6x + 21y = 3
A B C D E
1. The graphical solution to a pair of simultaneous linear equations is given by the
point of intersection of the two lines representing the equations.
2. The coordinates of the point of intersection can be obtained from the graph, but
should always be veried using algebra.
3. To verify the graphical solution, substitute the coordinates of the point of
intersection into the equations and check whether the substitution will result in
the true statement.
4. Alternatively, solve the equations algebraically by using the substitution or the
elimination method.
remember
7B
WORKED
Example
4
multiple choice
x
y
2
0
2
7
(7, 5) 0
x
y
2
2
(5, 7)
7
x
y
2 7
0
2
(7, 9)
7
x
y
2
0
2
(5, 7)
x
y
2 7
0
2
(7, 5)
3
For the simultaneous equations 2x 3y = 6
5x + 3y = 8
Graphs of simultaneous linear
inequations
The graph of a linear equation is a straight line and the solution to a pair of simul-
taneous linear equations is a point of intersection of the two lines.
The graph of a linear inequation is a half plane and the solution to a pair of simul-
taneous linear inequations is the area that is common to both half planes; that is, the
area of their intersection.
To nd the graphical solution to a pair of simultaneous linear inequations, the
following algorithm can be used:
1. On the same set of axes sketch each of the inequations, shading the regions that are
required.
2. The solution is represented by the area that is shaded by both graphs, so specify this by
adding a legend to the graph (that is, Region required).
A B C D E
multiple choice
x
y
3
0
2
8
5
8
3
2
7
4
21
( , 2 )
x
y
3
0
2
8
5
8
3
(2, )
2
3
3
0
2
8
3
8
5
x
y
16
19
(2 , )
2
19
3
2
8
5
x
y
0 8
3
( , 1 )
6
9
15
19
x 0
y
2
8
5
8
3
( , 2 )
2
19
3 16
19
Sketch the following pair of simultaneous linear inequations, determine the point of
intersection and shade the required region (that is, the solution).
x 2, x + 2y 0
THINK WRITE
Sketch the graph of x 2.
(a) The graph of the equation x = 2 is a
vertical line which intersects the x-axis at
2 (there is no y-intercept). Since the
inequation contains , draw a solid line.
Boundary equation for x 2 is
x = 2.
Test point: (3, 0)
Is 3 2? Yes
(b) Substitute x = 3 into x 2 to see if it
satises the inequation; that is, is 3 2?
(c) Since the inequation is correct, shade the
side of the line that contains the point.
Sketch the graph of x + 2y 0.
(a) To sketch the graph of x + 2y = 0, rst
determine the x-intercept by letting y = 0.
Boundary equation for x + 2y 0 is
x + 2y = 0.
x-intercept: y = 0
x + 0 = 0
x = 0 (0, 0)
Continued over page
1
0 x
2
y
2
5
WORKEDExample
THINK WRITE
(b) Determine the y-intercept by letting x = 0. y-intercept: x = 0
0 + 2y = 0
y = 0 (0, 0)
(c) Since x- and y-intercepts coincide, an
alternative point must be chosen. To obtain
the alternative point, let x or y equal any
number other than 0. Say, let x = 4.
If x = 4,
4 + 2y = 0
2y = 4
y = 2 (4, 2)
(d) To sketch the graph of x + 2y = 0, mark
the points (0, 0) and (4, 2) on the set of
axes and join them with a straight line.
(Use a solid line, since the inequation
contains the sign.)
(e) Select any point on one side of the line,
say (1, 1) and substitute its coordinates
into x + 2y 0 to see if it satises the
inequation; that is, is 3 0?
(f) Since the inequation is false, shade the side
of the line that does not contain the point.
Test point: (1, 1)
1 + 2 1 0
Is 3 0? No
Find the coordinates of the point of
intersection of the two lines.
(a) Write the given inequations as equations
and label them [1] and [2].
x = 2 [1]
x + 2y = 0 [2]
(b) Substitute x = 2 into equation [2]. Substituting [1] into [2]:
2 + 2y = 0
(c) Solve for y. 2y = 2
y = 1
(d) State the coordinates of the point of
intersection.
The solution set is (2, 1).
Write the coordinates of the point of
intersection on the graph and add the legend.
0
x
2
(4, 2)
y
4
0
x
2 4
(4, 2)
y
3
4
0
x
2 4
(4, 2)
(2,1)
y
Region
required
1
Sketch the following pair of simultaneous linear inequations, determine the point of
intersection and shade the required region.
2x + 3y 6
x y 3
6
WORKEDExample
THINK WRITE
Sketch the graph of 2x + 3y 6.
(a) To sketch the graph of 2x + 3y = 6, rst
Boundary of 2x + 3y 6 is
2x + 3y = 6.
x-intercept: y = 0
2x + 0 = 6
x = 3 (3, 0)
(b) Determine the y-intercept by letting
x = 0.
y-intercept: x = 0
0 + 3y = 6
y = 2 (0, 2)
(c) On the set of axes mark x- and
y-intercepts and join them with a solid
straight line (since the inequation
contains the sign).
(d) Substitute the coordinates of the point
(0, 0) into 2x + 3y 6 to see if it satises
the inequation; that is, is 0 6?
Test point: (0, 0)
Is 2 0 + 3 0 6? Yes
(e) Since the inequation is correct, shade the
Sketch the graph of x y 3.
(a) To sketch x y = 3, rst determine the
x-intercept by letting y = 0.
Boundary of x y 3 is
x y = 3.
x-intercept: y = 0
x 0 = 3
x = 3 (3, 0)
x = 0.
y-intercept: x = 0
0 y = 3
y = 3 (0, 3)
(c) Mark the x- and y-intercepts and join them
with a solid straight line.
Test point: (0, 0)
Is 0 0 3? No
(0, 0) into x y 3 to see if it satises
(e) Since the inequation is false, shade the
side of the line that does not contain the
point.
Find the point of intersection of the two lines:
(a) Write the given inequations as equations
and label them [1] and [2].
2x + 3y = 6 [1]
x y = 3 [2]
Continued over page
1
3
2
0
x
y
2
3
0
x
y
2
3
3
Graphs of simultaneous linear inequations can be obtained using a graphics calculator.
For instance, the problem discussed in Worked example 6 can be solved as shown
below.
First transpose both inequations to make y the subject:
2x + 3y 6 and x y 3
2x + 3y x + 2 and x y x 3
THINK WRITE
(b) To equate the coefcients of y, multiply
equation [2] by 3 and label the resulting
equation [3].
[2] 3:
3x 3y = 9 [3]
(c) Eliminate y by adding equations
[1] and [3].
[1] + [3]:
2x + 3y + 3x 3y = 6 + 9
(d) Solve for x. 5x = 15
x = 3
(e) Substitute x = 3 into either equation,
say [2], and solve for y.
Substituting x = 3 into [2]:
3 y = 3
y = 0
(f) State the coordinates of the point of
intersection.
Solution set is (3, 0).
Add to the graph the coordinates of the point
of intersection and the legend.
1. To nd the graphical solution of the
simultaneous linear inequations, press:
5: GRAPH
(TYPE)
(
)
(Y ).
Y1 (2 3) X + 2
Y2 X 3.
4
3
2
3
0
x
y
Region
required
(3, 0)
Graphics Calculator
Graphics Calculator
tip!
tip!
Solutions to simultaneous
linear inequations
2
3
---
MENU
F3
F6
F4
EXE
2. To set the viewing screen, press:
(V-WIN).
Set the elds as shown and then press .
3. To display the required region, press
(DRAW).
The shaded area shows the required region.
4. To nd the point of intersection, press:
(G-SLV)
(ISCT).
The coordinates of the intersection point will
be displayed.
1. To nd the graphical solution of the
simultaneous linear inequations, press:
MENU b
In the function area at the bottom of the
screen, press Clear . to delete f1(x) = .
.
The required region is the section where the
two shadings overlap.
2. To nd the intersection point, press:
MENU b
6: Points & Lines 6
Use the NavPad to move close to the
intersection point. A pointing nger will
appear. Press Click x twice and the
coordinates of the intersection point will be
displayed.
SHIFT
F3
EXE
F6
SHIFT
F5
F5
y
2
3
------ x 2 +
y x 3
Graphs of simultaneous
linear inequations
1 Sketch the graphs of the following pairs of simultaneous inequations, determine
the point of intersection and shade the required region.
2 Sketch the graphs of the following pairs of simultaneous inequations, determine
the point of intersection and shade the required region.
3
a For the simultaneous inequations y 3 and x + 2y 6,
the gure showing the correct graphs and required region (shaded) is:
a x 0
x + 4y 0
b y 2
x + y 1
c x 1
x y 2
d y 2x
y 3x
e y 6
5x + 10y 20
f y 3
3x 4y 24
a 2x 3y 0
x + 2y 0
b 2x + 4y 8
3x + y 3
c 4x + 3y 12
x + 4y 4
d x + y 10
x y 10
e 5x + 4y 20
x y 5
f 3x + 2y 6
3x 2y 6
g 5x + 2y 15
3x + 6y 18
h 4x 6y 12
2x + 2y 10
i 7x y 14
3x + 4y 9
j 4x y 8
14x + 2y 14
k 2x + 2y 6
x y 4
l 6x + y 12
6x 3y 6
m 4x y 2
4x + y 2
n 3x + 3y 3
2x + y 1
o x 5y 10
4x + 2y 12
p 6x 3y 3
3x + 4y 4
q 8x + 4y 8
x 1
r 2
2
A B C D E
1. The graphical solution to a pair of simultaneous linear inequations is the region
common to both inequations.
2. To nd the graphical solution of simultaneous linear inequations:
(a) Sketch each of the inequations on the same set of axes.
(b) Find the coordinates of the point of intersection of the two lines that form
the boundaries and add it to the graph.
(c) Add the legend to the graph to indicate that the solution (region required) is
the area which is shaded.
remember
7C
WORKED
Example
5
WORKED
Example
6
eBookplus eBookplus
Digital docs:
SkillSHEET 7.2
Simultaneous equations
WorkSHEET 7.1
y
2
---
x
2
---
y
3
---
x
3
---
y
2
--- +
multiple choice
3
0
x
y
6
Region required
3
0
x
y
6
Region required
3
0
x
y
6
Region required
3
0
x
y
6
Region required
3
0
x
y
6
Region required
b For the simultaneous inequations 24x 12y 12 and 12x + 16y 10,
the gure showing the correct graphs and required region (shaded) is:
Graphs of systems of linear inequations
In the previous section we discussed how to sketch the graphs of pairs of simultaneous
linear inequations. The number of inequations to be graphed simultaneously can be
extended. We refer to the groups that contain more than two inequations as systems.
The solution to a system of linear inequations is the area, common to all half-planes,
representing those inequations. Graphically, the solution is given by the region where
all the shadings overlap.
A B C D E
0
Region required
1
5
6
5
8
1
x
y
Region required
0
1
5
6
5
8
1
x
y
Region required
0
1
5
6
5
8
1
x
y
Region required
0
1
5
6
5
8
1
x
y
Region required
0
1
5
6
5
8
1
x
y
Sketch the following system of linear inequations and shade the
required region. (Do not calculate the coordinates of the points of
intersection of the straight lines.)
x + 2y 4 [1] 2x y 3 [2] x 5 [3] y 1 [4]
Continued over page
THINK WRITE
Sketch the graph of x + 2y 4.
(a) To sketch x + 2y = 4, rst determine
the x-intercept by letting y = 0.
Boundary equation for x + 2y 4 is
x + 2y = 4.
x-intercept: y = 0
x + 2 0 = 4
x = 4 (4, 0)
x = 0.
y-intercept: x = 0
1 0 + 2y = 4
2y = 4
y = 2 (0, 2)
(c) On the set of axes mark the x- and
y-intercepts and join them with a
solid straight line (since the
inequation contains a sign).
Test point: (0, 0)
Is 0 4? No
(0, 0) into x + 2y 4 to see if it satises
(e) Since the inequation is false, shade the
side of the line that does not contain the
point.
1
x
y
4
2
1
7
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 7
int-0483
THINK WRITE
Sketch the graph of 2x y 3.
(a) To sketch 2x y = 3, rst determine
the x-intercept by letting y = 0.
Boundary equation for 2x y 3 is
2x y = 3.
x-intercept: y = 0
2x 0 = 3
2x = 3
x = 1.5 (1.5, 0)
x = 0.
y-intercept: x = 0
0 y = 3
y = 3 (0, 3)
(c) Mark the x- and y-intercepts on the
set of axes and join them with a solid
straight line (since the inequation
contains a sign).
Test point: (0, 0)
Is 0 3?
(0, 0) into 2x y 3 to see if it
satises the inequation; that is, is
0 3?
(e) Since the inequation is false, shade
the side of the line that does not
contain the point.
(a) Sketch the graph of x = 5 (a vertical
straight line passing through 5 on the
x-axis). Use a solid line, as the
inequation contains a sign.
Boundary equation for x 5 is x = 5.
Test point: (0, 0)
Is 0 5? Yes
(b) Substitute x = 0 into x 5 to see if it
(c) Since the inequation is correct, shade
the side of the line that contains the
point.
Sketch the graph of y 1.
(a) Sketch the graph of y = 1 (a
horizontal line, passing through 1 on
the y-axis). Use a solid line, as the
inequation contains the sign.
Boundary equation for y 1 is y = 1.
Test point: (0, 0)
Is 0 1?
(b) Substitute y = 0 into y 1 to see if it
satises the inequation; that is, is
0 1?
(c) Since the inequation is false, shade
the side of the line that does not
contain the point.
The polygon which represents the
overlapping of all the shaded areas is the
region required. Label the vertices of the
polygon A, B and C and add the legend
to the graph.
2
x
y
4
2
3
1
1
2
1
3
x
y
4
5
2
3
1
1
2
1
4
x
y
4
5
2
3
1
1
2
1
5
x
y
4
5
2
3
1
1
2
1
Region
required
A B
C
In the previous example a boundary polygon, ABC, has been formed.
The terminology below will be used in the sections that follow.
1. The shaded region and the polygon are together called the feasible region. They rep-
resent all the points that satisfy the system of linear inequations.
2. Points A, B and C are vertices of the feasible region and can be determined by
nding the points of intersection of the relevant lines (that is, solving simultaneous
equations where necessary). The vertices are also referred to as feasible points or
corner points.
Graphs of systems of
linear inequations
1 Sketch the graphs of the following systems of inequations and shade the required region.
(Do not calculate the coordinates of the points of intersection of the straight lines.)
a x 0 b x 0 c x 0 d 2x + 3y 3
y 0 y 0 y 0 2 + 3yx 2
x 3 x 2 x 5 2 + 3yy 2
y 4 y 6 y 7
e 6x + 5y 30 f 2x 4y 8 g 4x + y 4 h 4x + 6y 12
6 + 5yx 1 2 4yx 4 2x + y 4 3x + y 9
6 + 5yy 3 2 4yy 2 4 + yy 0 4 + 6yx 0
i 8x 4y 4 j x + y 1 k 2x y 2 l x 3y 1
8x 4y x x y 1 x + 2y 1 x 2x y
8x 4x 0 x x 2 2 yx 3 x 2x
8x 4y 6 x y 2 2 yy 1 x 2y 0
m 4x + 3y 12 n 2x 3y 0 o 3x + 2y 6 p 4x 2y 2
2x + 5y 10 x + 2y 0 3x 2y 6 4x + y 2
2x + 5x 1 x + 2x 5 3x 2x 0 4x 2x 2
2x + 5y 1 x + 2y 0 3x 2y 0 4x 2y 2
q 3x + 3y 3 r 6x + 3y 12 s 5x + 10y 15 t x + 2y 16
2x + y 1 4x + 2y 16 6x 2y 9 2x + 5y 15
3x + 3x 1 4x + 2x 0 5x + 10x 0 2x + 5x 5
3x + 3y 1 4x + 2y 0 5x + 10y 0 2x + 5x 0
2x + 5y 0
1. A group of simultaneous linear inequations is referred to as a system.
2. The graphical solution to the system of linear inequations is the area, common
to all half-planes, representing those inequalities. It is the region that is the
overlap of all the shaded areas.
3. The shaded area together with the boundary polygon, formed as a result of
sketching the system of simultaneous linear inequations, is called a feasible region.
4. The vertices of the polygon are called feasible (or corner) points.
remember
7D
WORKED
Example
7
1
2
---
u 3x + 5y 15 v 6x + 3y 18 w x + y 9 x 7x + 3y 21
x + y 8 3x y 6 8x 3y 24 7x + 3y 3x
3x + 5x 5 6x + 3x 4 8x 3y x 7x + 3y 7
3x + 5x 0 6x + 3x 0 8x 3x 0 7x + 3x 0
3x + 5y 0 6x + 3y 0 8x 3y 0 7x + 3y 0
2
The required region for the system of inequations x 0, y 0, 7x + 5y 35 and
2x + y 8 is:
3
The required region for the system of inequations x 0, y 0, 3x 8y 35 and
x + y 4 is:
4
The system of inequations which best describes the
graph at right is:
A x 0, y 0, x + y 9, x + 2y 12
B x 0, y 0, x + y 9, x + 2y 12
C x 0, y 0, x + y 12, 2x + y 9
D x 0, y 0, x + y 9, x + 2y 12
E x 0, y 0, x + y 9, 2x + y 12
5
The system of inequations which best describes the
graph at right is:
A x 0, y 0, 2x + 3y 24, 2x 2y 12
B x 0, y 0, 2x + 3y 24, 2x 2y 12
C x 0, y 0, 2x + 3y 24, 2x 2y 12
D x 0, y 0, 2x + 3y 24, 2x 2y 12
E x 0, y 0, 3x + 2y 24, 2x 2y 12
A B C D E
A B C D E
1
2
---
multiple choice
0 x
y
Region required
8
7
45
0 x
y
Region required
8
7
45
0 x
y
Region required
8
7
45
0 x
y
Region required
8
7
45
0 x
y
Region required
8
7
45
multiple choice
1
2
---
0
x
y
Region required
8
11
2
3 4
3
8
4
0
x
y
Region required
8
11
2
3 4
3
8
4
0
x
y
Region required
8
11
2
3 4
3
8
4
0
x
y
Region required
8
11
2
3 4
3
8
4
0
x
y
Region required
8
11
2
3
4
4
3
8
multiple choice
0
x
y
Region required
9
6
9 12
multiple choice
0
x
y
Region required
8
6
6 12
Maximising and minimising linear
functions
Linear programming is employed to maximise or minimise linear functions subject to
the constraints given by a system of linear inequations.
In this section we learn to maximise and minimise linear functions using two
methods: the sliding-line method and the corner point method.
Sliding-line method
To maximise/minimise linear functions using the sliding-line method:
1. Sketch the feasible region.
2. Determine the coordinates of all corner points.
3. Graph the linear function to be maximised or minimised.
4. (a) To maximise the linear function, slide the line up and nd the last point the line
touches in the feasible region.
(b) To minimise the linear function, slide the line down and nd the last point the
line touches in the feasible region.
While maximising/minimising a linear function, you will at one stage need to graph
it. The function is usually expressed in terms of x and y and needs to be transposed rst
to make y the subject.
Consider the function c = 4x + 2y.
When transposed, it will give: y = 2x + .
The linear function has a gradient of 2 and a y-intercept of .
If values of 1, 0, 1, 2, 3, . . . are assigned to c, a series of parallel
lines will be formed (that is, lines with the same gradient, but dif-
ferent y-intercepts), as shown in the diagram at right.
For maximising/minimising linear functions using the sliding-
line method, any one of the lines shown in the diagram at right
can be selected to be the sliding line. The following example
illustrates the concept.
c
2
---
c
2
---
x
y
0
y = 2x +
2
c
1
c
=
0
c
=
1
c
=
2
c
=
3
c
=
1
3
2
1
2
1
2
a Sketch the system of linear inequations given by:
6x + 8y 24, x 2, x 0, y 0
and shade the required region.
b Determine the coordinates of the vertices of the feasible region.
c Determine the maximum and minimum values of R = 2x + 2y subject to the constraints
above, using the sliding-line method.
Continued over page
THINK WRITE
a Sketch the graph of 6x + 8y 24.
(a) To sketch the graph of 6x + 8y = 24, rst
a Boundary equation of 6x + 8y 24
is 6x + 8y = 24.
x-intercept: y = 0
6x + 8 0 = 24
6x = 24
x = 4 (4, 0)
1
8
WORKEDExample
THINK WRITE
x = 0.
y-intercept: x = 0
6 0 + 8y = 24
8y = 24
y = 3 (0, 3)
(c) Mark the x- and y-intercepts on the set of
axes and join them with a straight line.
Since the inequation contains the sign, a
solid line must be drawn.
Test point: (0, 0)
Is 0 24? Yes
(d) Substitute the coordinates of the point (0, 0)
into 6x + 8y 24 to see if it satises the
(e) Since the inequation is correct, shade the
(a) Sketch the graph of x = 2 (a vertical straight
line, passing through the 2 on the x-axis).
Use a solid line, since the inequation
contains a sign.
Boundary equation of x 2 is x = 2.
(b) Substitute x = 0 into x 2 to see if it satises
Test point: (0, 0)
Is 0 2? Yes
(c) Since the inequation is correct, shade the
(a) Sketch x = 0 (which is actually the y-axis),
using a solid line, since the inequation
contains a sign.
Boundary equation for x 0
is x = 0.
(b) Choose a point on the x-axis, say x = 1, and
check that it satises the inequation
x 0. That is, is 1 0?
Test point: (1, 0)
Is 1 0? Yes
(c) Since the inequation is correct, shade the side
Sketch the graph of y 0.
(a) Sketch y = 0 (which is actually the x-axis),
using a solid line, as the inequation contains
a sign.
Boundary equation of y 0
is y = 0.
Test point:
(0, 1)
(b) Choose a point on the y-axis, say y = 1, and
check that it satises y 0; that is, is 1 0?
Is 1 0?
Yes
(c) Since the inequation is correct, shade the side
Transfer all of the above information onto a
graph. Label the vertices of the feasible region
A, B, C and O.
x
y
3
4
0
Region required
2
3
4
5
x
y
3
4 2
0
O
C
A
B (2, 1.5)
Region required
THINK WRITE
b Determine the coordinates of the corner
points: read the coordinates of points O, A and
C from the graph.
b O (0, 0), A (2, 0) and C (0, 3)
The coordinates of point B can be determined
by nding the point of intersection of the lines
6x + 8y = 24 and x = 2.
Substitute x = 2 into 6x + 8y = 24 and solve
for y.
6x + 8y = 24 [1]
x = 2 [2]
Substituting [2] into [1]:
6 2 + 8y = 24
12 + 8y = 24
8y = 12
y = 1.5
State the coordinates of point B. The solution set is B (2, 1.5).
c Transpose the equation that needs to be
maximised or minimised to make y the
subject.
c R = 2x + 2y
2y = 2x + R
y = x +
Select any value of R, say, 0. Let R = 0.
y = x +
y = x
Sketch the linear function y = x.
Treat the linear function as a sliding line.
(a) To maximise the linear function, slide the
line up and nd the last corner point the
line touches in the feasible region. (This
can be done easily by placing a ruler along
the line and sliding it up, parallel to the
line, until it touches the last corner point.)
(b) To minimise the linear function, slide the
line down and nd the last corner point
the line touches in the feasible region.
Observe from the graph at which point the
maximum and minimum intercepts occur
within the feasible region.
Maximum occurs at B (2, 1.5).
Minimum occurs at O (0, 0).
Substitute the coordinates of point B into
equation R = 2x + 2y to determine the
maximum value of R.
R(max.) = 2 2 + 2 1.5
= 4 + 3
= 7
Substitute the coordinates of point O into
R = 2x + 2y to nd the minimum value of R.
R(min.) = 2 0 + 2 0
= 0 + 0
= 0
1
2
3
1
R
2
---
2
0
2
---
3
x
y = x
y
3
4 2
0
O
C
A
B (2, 1.5)
Region required
4
x
y
3
4 2
0
O
C
A
B (2, 1.5)
Minimum
Maximum
Region required
5
6
7
Corner point method
To maximise/minimise linear functions using the corner point method:
1. Sketch the feasible region.
2. Determine the coordinates of all corner points.
3. Apply the corner point method by substituting coordinates of each corner point into
the linear function which is to be maximised or minimised.
4. Select maximum and minimum values.
Using Worked example 8, substitute the values of each corner point into the equation
R = 2x + 2y, and then select the maximum and minimum values.
O (0, 0) R = 2 0 + 2 0 = 0 (Minimum)
A (2, 0) R = 2 2 + 2 0 = 4
B (2, 1.5) R = 2 2 + 2 1.5 = 7 (Maximum)
C (0, 3) R = 2 0 + 2 3 = 6
a Sketch the following system of linear inequations and shade the required region.
x + y 10, y x 4, y 2x + 1, x 0, y 0
b Determine the coordinates of the vertices of the feasible region.
c Determine the maximum and minimum values of z = 3x y subject to the above
constraints, using the corner point method.
THINK WRITE
a For the boundary equations, replace the
inequality signs with an = sign in each
inequation and label the resulting
equations [1], [2], [3], [4]
and [5].
a x + y = 10 [1]
y = x 4 [2]
y = 2x + 1 [3]
x = 0 [4]
y = 0 [5]
Determine the intercepts for [1], [2]
and [3].
x + y = 10
x-intercept: y = 0, x = 10 (10, 0)
y-intercept: x = 0, y = 10 (0, 10)
y = x 4
x-intercept: y = 0, x = 4 (4, 0)
y-intercept: x = 0, y = 4 (0, 4)
y = 2x + 1
x-intercept: y = 0, x = 0.5 (0.5, 0)
y-intercept: x = 0, y = 1 (0, 1)
Sketch all graphs.
Find the required region for each
inequation by using a test point.
Transfer all of the information onto the
graph. Label the vertices of the feasible
region A, B, C, D and O.
b Read the coordinates of points O, A and
D from the graph.
b
O (0, 0), A (0, 1) and D (4, 0)
1
2
3
4
5
1
10
4
4 10
B
O
2
C
A D
Region
required
y
x
1
9
WORKEDExample
The linear function to be maximised or minimised is often referred to as the objective
function. The maximum or minimum values of the objective function always occur at a
corner point (vertex) of the feasible region.
THINK WRITE
Find point B.
(a) The coordinates of point B can be
determined by solving equations [1]
and [3] simultaneously: substitute
[3] into [1].
x + y = 10 [1]
y = 2x + 1 [3]
x + 2x + 1 = 10
(b) Solve for x. 3x + 1 = 10
3x = 9
x = 3
(c) Substitute x = 3 into equation [3] to
nd the value of y.
y = 2 3 + 1
y = 7
(d) State the coordinates of the point B. The solution set is B (3, 7).
Find point C.
(a) To obtain the coordinates of the point C,
solve equations [1] and [2] simultaneously.
x + y = 10 [1]
y = x 4 [2]
(b) Substitute [2] into [1]. Substituting [2] into [1]:
x + x 4 = 10
(c) Solve for x. 2x 4 = 10
2x = 14
x = 7
(d) Substitute x = 7 into equation [2] to
nd the value of y.
y = 7 4
y = 3
(e) State the coordinates of the point C. The solution set is C (7, 3).
c Substitute the coordinates of each point
into the linear function, z, to determine
its maximum and minimum values.
c z = 3x y
O (0, 0) z = 3 0 0 = 0
A (0, 1) z = 3 0 1 = 1
B (3, 7) z = 3 3 7 = 2
C (7, 3) z = 3 7 3 = 18
D (4, 0) z = 3 4 0 = 12
Select maximum and minimum values
of z.
z
min.
= 1 (vertex A)
z
max.
= 18 (vertex C)
2
3
1
2
1. To maximise/minimise a linear (objective) function:
(a) Sketch the feasible region.
(b) Determine the coordinates of all corner points.
(c) Apply the sliding-rule method by drawing a graph of the objective function and
moving a ruler up or down along it. The last corner point of the feasible region
to be passed gives the maximum or minimum value of the objective function.
2. Alternatively, apply the corner point method by substituting the coordinates of
each corner point into the objective function and selecting minimum and/or
maximum value(s).
remember
Maximising and minimising
linear functions
1 For each of the following systems of inequations:
i Sketch the system of inequations and shade the required region.
ii Determine the coordinates of the vertices (corner points) of the feasible region.
iii Determine the maximum or minimum value (as specied) of the objective function
for the given constraints, using the sliding-line method.
a Maximise z = x y subject to x 0, y 0, x 4, y 6.
b Minimise z = x + 3y subject to x 0, y 0, y x, y 7.
c Maximise z = x + 2y subject to x 0, y 0, y x, x 5.
d Maximise z = 4x + 6y subject to x 0, y 0, x + y 4, 3x + 8y 24.
e Minimise z = 3x 6y subject to x 0, y 0, 2x + 2y 8, 6x + 8y 30.
f Maximise z = 0.8x + 1.2y subject to x 0, y 0, x 4y 10, 2x + 7y 28.
g Minimise z = 9x + 3y subject to x 0, y 0, 2x + 3y 18, 3x + 4y 30.
h Maximise z = 3x + y subject to x 0, y 0, 5x + 2y 20, x 3, y 9.
i Minimise z = x + y subject to x 0, y 0, 2x + y 3, 6x 3y 12, 3x + 3y 15.
j Maximise z = 3x + 4y subject to x 0, y 0, 2x + y 9, 3x 5y 12, x 6, y 10.
2 For each of the following systems of inequations:
i Sketch the system of inequations and shade the required region.
ii Determine the coordinates of the vertices (corner points) of the feasible region.
iii Determine the maximum or minimum value (as specied) of the objective function
for the given constraints, using the corner point method.
a Minimise z = 2x + y subject to x 0, y 0, x + y 3, 4x + 7y 28, 2x + 8y 0, x 6.
b Maximise z = 2x + y subject to x 0, y 0, x + y 8, y 2.
c Minimise z = 5x y subject to x 0, y 0, x 6, x y 8.
d Minimise z = 3x + 4y subject to x 0, y 0, x + y 4, x y 4, x 8.
e Maximise z = 1.8x + 2.2y subject to x 0, y 0, x 10, y 7, x + y 8.
f Minimise z = 0.7x 0.3y subject to x 0, y 0, 2x y 4, 3x + 4y 36, y 5.
g Maximise z = 1.5x + 2.7y subject to x 0, y 0, 5x 6y 30, x + y 10, y 6.
h Minimise z = 3.2x 1.4y subject to x 0, y 0, 7x + 4y 28, 4x + 2y 16, x + y 14.
i Maximise z = 7x 3y subject to x 0, y 0, 2x + y 9, 2x + 6y 18, x y 3.
j Minimise z = 9.2x 5.1y subject to x 0, y 0, 15x + 6y 30, 6x 4y 36, y 7, x 4.
3
a The minimum value of the equation z = x y subject to x 0, y 0, x 7, y 8 is:
b The maximum value of the equation z = 2x + 5y subject to x 0, y 0, y 4,
2x + 4y 24 is:
c The maximum value of the equation z = 5x 7y subject to x 0, y 0, x + y 4,
3x + 9y 24 is:
d The minimum value of the equation z = 10x 4y subject to x 0, y 0,
7x + 4y 14, 8x 8y 16, x 3 is:
A 8 B 1 C 0 D 1 E 7
A 0 B 16 C 20 D 28 E 40
A 28 B 18.9 C 4 D 20 E 32
A 28 B 20 C 14 D 5 E 20
7E
WORKED
Example
8
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SkillSHEET 7.3
Vertices of feasible
regions
SkillSHEET 7.4
Sliding line method
SkillSHEET 7.5
Corner point method
Spreadsheet
068 Linear programming
WORKED
Example
9
1
2
---
multiple choice
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WorkSHEET 7.2
Solving linear programming problems
The techniques developed earlier in this chapter can now be employed to solve linear
programming problems. For the purpose of this course, all problems will involve
exactly two variables. It is important to note that linear programming problems involve
only and signs; therefore, when graphing inequalities, only solid lines will be used.
To solve linear programming problems, use the following algorithm:
1. Dene the variables.
2. Write the inequations (constraints) in terms of the variables.
3. Determine what must be maximised or minimised. This is called the objective
function.
4. Write the objective function in terms of the variables.
5. Draw the graph of each constraint and obtain the feasible region (shaded region).
6. Obtain the coordinates of the corner points.
7. Employ the sliding-line method or the corner point method to obtain the maximum
or minimum value of the objective function.
Bright Spark Enterprises Pty Ltd produces two
types of computer games, A and B. The company
is contracted to produce at least 20 type-A games
and at least 60 type-B games each week.
The factory can produce a maximum of 120 games
per week. The prot on type-A games is $10 and
the prot on type-B games is $15. How many of
each game should be produced each week so as
to make the greatest weekly prot, assuming all
games produced can be sold?
Continued over page
THINK WRITE
Dene the variables. Let x = number of type-A computer games produced.
Let y = number of type-B computer games produced.
Write the inequations (constraints) in
terms of the variables:
(a) The number of type-A games
produced should be 20 or more.
(b) The number of type-B games
(c) The total production can not exceed
120 games.
x 20
y 60
x + y 120
Determine what must be maximised or
minimised.
Maximum prot (P) required.
Express the objective function in terms
of the variables x and y.
P = 10x + 15y
1
2
3
4
10
WORKEDExample
Bright Spark Enterprises Pty Ltd produces two
types of computer games, A and B. The company
is contracted to produce at least 20 type-A games
and at least 60 type-B games each week.
The factory can produce a maximum of 120 games
per week. The prot on type-A games is $10 and
the prot on type-B games is $15. How many of
each game should be produced each week so as
to make the greatest weekly prot, assuming all
games produced can be sold?
Continued over page
THINK WRITE
Dene the variables. Let x = number of type-A computer games produced.
Let y = number of type-B computer games produced.
Write the inequations (constraints) in
terms of the variables:
(a) The number of type-A games
(b) The number of type-B games
(c) The total production can not exceed
120 games.
x 20
y 60
x + y 120
minimised.
Maximum prot (P) required.
Express the objective function in terms
of the variables x and y.
P = 10x + 15y
1
2
3
4
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Tutorial:
Worked example 10
int-0484
THINK WRITE
Find the required region for x + y 120.
(a) To sketch the graph of x + y = 120,
determine the x-intercept and the
y-intercept.
Boundary for x + y 120
is x + y = 120.
x-intercept: y = 0, x = 120 (120, 0)
y-intercept: x = 0, y = 120 (0, 120)
(b) Substitute the coordinates of the
point (0, 0) into x + y 120 to see
if it satises the inequation; that is,
is 0 120?
Test point: (0, 0)
Is 0 120? Yes
Find the required region for x 20. Test point for x 20: (0, 0)
Is 0 20? No
Find the required region for y 60. Test point for y 60: (0, 0)
Is 0 60? No
Transfer all of the above information
onto the graph. Label the corner points.
Determine the points of the feasible region.
(a) Point A: Read the coordinates of the
point of intersection of the horizontal
and vertical lines from the graph.
A (20, 60)
(b) Point B: Solve x + y = 120 and
y = 60 simultaneously; substitute
y = 60 into x + y = 120 and solve
for x.
x + y = 120 [1]
y = 60 [2]
x + 60 = 120
x = 60
(c) State the coordinates of point B. B (60, 60)
(d) Point C: Solve x + y = 120 and
x = 20 simultaneously; substitute
x = 20 into x + y = 120 and solve
for y.
x + y = 120 [3]
x = 20 [4]
20 + y = 120
y = 100
(e) State the coordinates of point C. C (20, 100)
Employing the corner point method,
substitute the coordinates of the corner
points into the objective function P.
P = 10x + 15y
At A (20, 60) P = 10 20 + 15 60 = 1100
At B (60, 60) P = 10 60 + 15 60 = 1500
At C (20, 100) P = 10 20 + 15 100 = 1700
Select the maximum value of P. P
max.
= 1700 at C (20, 100)
Relate the answer to the original
question.
A maximum prot of $1700 will be obtained when
20 type-A and 100 type-B games are produced.
5
6
7
8
60
120
B
0
C
A
Region
required
y
x
20 120
9
10
11
12
Solving linear programming
problems
1 For a semester project, Cathys Business Management Team produces two styles of
sundial clock. Each clock is made from an old vinyl record. The team is able to
produce up to 24 clocks weekly. A minimum of 5 style-A and 3 style-B clocks are
ordered each week. The prot on style-A clocks is $2 and the prot on style-B
clocks is $3.
a To obtain a maximum weekly prot, how many of each style of clock should be
produced each week?
b Assume all clocks produced can be sold. What is the maximum weekly prot?
2 Katrina and Erin design two types of tracksuit for Right-on-Track
sportswear. Design A requires 2 m of material while design B
requires 3 m of material. The total amount of material
available each day is 60 m. At least 3 of design-A and at
least 4 of design-B tracksuits must be produced each
day to satisfy orders. Design-A tracksuits are sold at
a prot of $5 while design-B tracksuits are sold at
a prot of $6.50.
a To obtain a maximum daily prot, how many
tracksuits of each design should be produced each
day?
b Assume all tracksuits produced can be sold.
What is the maximum daily prot?
3 Active-8 Enterprises hires out rollerblades and
bicycles along the bay. Each day the company supplies
at least 15 pairs of rollerblades, and a minimum of 5 but
no more than 25 bicycles. No more than 40 pairs of
rollerblades and bicycles are hired on any particular day.
The prot on hiring out a pair of rollerblades is $4 and the
prot on hiring out a bicycle is $3.
a To obtain a maximum daily prot, how many pairs of roller-
blades and how many bicycles should be hired out each day?
b What is the maximum daily prot?
To solve linear programming problems:
1. dene the variables
2. write the constraints in terms of the variables
3. dene the objective function
4. draw the graphs of the constraints to obtain the feasible region (use solid lines
only)
5. nd the coordinates of the corner points
6. use either the sliding line or the corner point method to nd the maximum or
minimum value of the objective function.
remember
7F
WORKED
Example
10
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Spreadsheet
Interactivity:
Applications of
linear programming
int-0192
4 Squeaky Clean soap manufacturers produce two brands of liquid soap. To meet
demand, at least 20 litres of brand A and at least 14 litres of brand B must be
produced. Due to other factors the manufacturers are able to produce a maximum of
80 litres. The prot on brand A is $20 and the prot on brand B is $24.
a To obtain a maximum prot, how much of brand A and B should be produced?
b What is the maximum prot?
5 The Sweat It Out Gymnasium offers its participants aerobic classes and circuit
classes. At least 25 aerobic classes and at least 9 circuit classes must be held each
week. The gym is able to offer a maximum of 45 classes per week. Aerobic classes
produce a prot of $6 while circuit classes produce a prot of $4.
a In order to obtain a maximum prot, how many aerobic and circuit classes should
be held each week?
6 Jillaroos Adventures factory manufactures two types of tent: a 2-person tent and a
3-person tent. To meet demand, the factory manufactures at least eighteen 2-person
and at least eighteen 3-person tents each week. The 2-person tent takes 1 hours and
the 3-person tent takes 2 hours to make. The equipment needed to produce the tents
can be used for a maximum of 75 hours per week. Two-person tents return a prot of
$24 while 3-person tents return a prot of $28.
a How many of each type of tent should be produced weekly to obtain the maximum
prot?
7 It-Will-Print manufactures bubble jet and laser printers. To meet demand, the company
must produce a minimum of 5 laser printers, and the total of printers must be, at most,
25 each week. A bubble jet printer takes 2 hours to make and a laser printer takes
3 hours. Due to power restrictions the manufacturing plant can operate for only
60 hours per week. Bubble jet printers return a prot of $12 while laser printers return
a prot of $15.
a How many of each type of printer should be produced weekly to obtain the
maximum prot?
8 A farmer decides to divide his land
into two sections and plant corn
and peas. He has 80 hectares of
land available and must devote at
least 10 hectares to peas and at
least 10 hectares to corn. At
harvest time it takes 1 hour per
hectare to collect the corn and
3 hours per hectare to collect the
peas. The maximum time available
for collecting the crops is
120 hours. He can make a prot of
$180 per hectare of corn and
$160 per hectare of peas.
a How much of each crop should
be sown to obtain a maximum
prot?
1
2
---
1
2
---
9 Peters task as the new assistant manager at Sureway supermarket is to decide how to
achieve maximum prot from sales on two brands of fruit juice. He notes that, on any
given day, fruit juice sales are greater than 70 litres but less than 90 litres. Peter also
notices that Natures Own fruit juice sales are equal to or greater than generic brand
sales, and that at least 10 litres of generic brand juice is sold daily.
a How many litres of each type of juice should be sold for maximum prot if the
prot on Natures Own fruit juice is $2.50/L while the prot on the generic brand
is $1.20/L?
10 Sandra and Loretas Shantai resort has been redesigned specically to cater for
tourists and people attending business conventions. It is able to cater for a minimum
of 360 guests and a maximum of 510 on a monthly basis. The number of tourists is
always greater than the number of people at the conventions but never double the
people attending the conventions. The prot made per tourist per month is $15 while
the prot made per businessperson per month is $18.
a How many tourists and businesspeople should the hotel cater for each month to
make a maximum prot?
11 Mathematically Minded Limited produces 3-D puzzles and logic games. It takes
3 hours to produce the parts of a batch of twenty 3-D puzzles and 2 hours to produce
the parts of a batch of twenty logic games. The minimum time available for production
of these items is 12 hours. A batch of 3-D puzzles takes 1 hour to assemble while a
batch of logic puzzles takes 2 hours to assemble. A maximum of 10 hours is allocated
to assembling the games. The packaging of a batch of 3-D puzzles and a batch of logic
games requires 1 and 2 hours respectively. The minimum time allocated for the packing
of these items is 8 hours.
a How many of each item should be made to minimise costs if the overhead cost of
each 3-D puzzle is $1.80 while the overhead cost of each logic game is $1.25?
b What is the minimum cost?
12 A refrigerator manufacturer makes two models of refrigerator: Arctic Snow and Cool
Breeze. The manufacturers are able to produce up to 40 Arctic Snow and 50 Cool
Breeze models per fortnight, and production must not exceed 80 models (per fortnight).
Each Arctic Snow model requires 12 hours to make and each Cool Breeze model takes
10 hours. The factory is able to operate for a maximum of 840 production hours per
fortnight. Arctic Snow is able to generate a prot of $200 and Cool Breeze is able to
generate a prot of $110.
a How many of each model should be manufactured to obtain a maximum prot?
c If the prot generated by Arctic Snow was $140 (and the prot on Cool Breeze
remained the same), would the number of each model made still produce the
maximum prot?
13 Zorko Industries has produced two new cement products: CP
1
and CP
2
. Each 50-kg
bag of the cement products consists of specic amounts of substances a, b and c (in
units per bag) according to the table shown below:
Product a b c
CP
1
20 20 15
CP
2
25 15 10
The amounts of substances a, b and c available are 400, 300 and 210 units respec-
tively. Each 50-kg bag of CP
1
yields a prot of $45 and each 50-kg bag of CP
2
yields
a prot of $50.
a Let x represent the number of bags of CP
1
and let y represent the number of bags
of CP
2
. Explain why.
b Given that 20x + 25y 400, write two similar constraints on x and y.
c There are two other constraints. What are they?
d What is the objective function?
e What is the maximum prot (to the nearest dollar)?
14
Elio is commissioned to paint still-lifes and abstracts for the local gallery. He must
produce a minimum of 20 pieces for an upcoming exhibition. It takes him on average
10 hours to paint a still-life and 6 hours to paint an abstract, and the maximum time he
has to spend on his paintings is 180 hours.
If s represents still-lifes and a represents abstracts, the inequations for this infor-
mation are:
A a 0, s 0, s + a 20, 10s + 6a 180
B a 0, s 0, s + a 20, s 10, a 6, s + a 180
C a 0, s 0, s + a 180, 10s + 6a 20
D s 10, a 6, s + a 180, 10s + 6a 20
E s 10, a 6, s + a 20, 10s + 6a 180
15
The feasible region (shaded region) for the previous problem can best be dened by
the graph:
A B C D E
How many in the research team?
Sonic Boom Sound Systems has developed a new product and needs to organise a
research team to run a series of tests.
The team is to comprise experienced engineers (e) and training technicians (t).
The team is to consist of no more than 8 people, and at least 2 engineers but no
more than 6 engineers, and at least 1 but no more than 5 technicians. The number
of engineers must be greater than the number of technicians.
A minimum of 18 tests need to be conducted on the product in a week.
Engineers are able to conduct 5 tests per week and technicians 3. Engineers are
paid $1600 per week while technicians are paid $800.
multiple choice
multiple choice
s
a
18
20
30
20
0
Region required
30
s
a
10 18
6
0
20
20
Region required
s
a
18
20
30
20
0
Region required
s
a
18
20
30
20
0
Region required
s
a
18
20
30
20
0
Region required
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
programming
In this section we consider more-complex linear programming problems. Although you
might nd it harder to write the constraints and to dene the objective function, the
technique of solving these problems is exactly the same as the one discussed in the
previous section.
1 How many engineers and technicians should be chosen to keep wages to a
minimum?
2 What is the minimum weekly wage bill?
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Tutorial:
Worked example 11
int-0485
The dietitian of the local football club purchases two types of powdered food products for
her team. The nutritional contents of the two products per 250 g are listed in the table
below:
Continued over page
Component Product A Product B
Carbohydrates 25 g 30 g
Fat 2 g 4 g
Protein 15 g 10 g
11
WORKEDExample
The teams minimum daily requirements of carbohydrates, fat and protein are 30 g, 4 g
and 15 g respectively. If product A costs 50 cents per 250 g and product B costs 60 cents
per 250 g, how much of each type should be used to supply the teams daily nutritional
requirements at the least cost?
THINK WRITE
Dene the variables. Let x = the amount of product A
(in units of 250 g)
y = the amount of product B
(in units of 250 g)
Write the inequations (constraints) in terms
of the variables.
25x + 30y 30
2x + 4y 4
15x + 10y 15
x 0
y 0
minimised.
Minimum cost required.
Express the objective function in terms of the
variables.
C = 0.50x + 0.60y
For boundary equations, replace the
sign in the constraints with the = sign and
label the resulting equations [1] to [5].
Boundary equations:
25x + 30y = 30 [1]
2x + 4y = 4 [2]
15x + 10y = 15 [3]
x = 0 [4]
y = 0 [5]
Determine the intercepts for [1], [2]
and [3].
25x + 30y = 30
x-intercept: y = 0, x = 1.2 (1.2, 0)
y-intercept: x = 0, y = 1 (0, 1)
2x + 4y = 4
x-intercept: y = 0, x = 2 (2, 0)
y-intercept: x = 0, y = 1 (0, 1)
15x + 10y = 15
x-intercept: y = 0, x = 1 (1, 0)
y-intercept: x = 0, y = 1.5 (0, 1.5)
Sketch all graphs.
(a) Sketch the graphs of the equations [1], [2]
and [3] by marking their respective x- and
y-intercepts on the set of axes and joining
them with a straight line.
(b) Sketch the graphs of the equations [4] and
[5] these are the x- and y-axes.
Find the required region for 25x + 30y 30.
(a) Substitute the coordinates of the point (0, 0)
into 25x + 30y 30 to see if it satises the
For 25x + 30y 30,
Test point: (0, 0)
Is 0 30? No
(b) Since the inequation is incorrect, shade the
side of the line that does not contain the point.
1
2
3
4
5
6
7
8
Continued over page
THINK WRITE
(a) Substitute the coordinates of the point
(0, 0) into 2x + 4y 4 to see if it satises
For 2x + 4y 4,
Test point: (0, 0)
Is 0 4?
(b) Since the inequation is incorrect, shade
the side of the line that does not contain
the point.
(a) Substitute the coordinates of the point
(0, 0) into 15x + 10y 15 to see if it
For 15x + 10y 15,
Test point: (0, 0)
Is 0 15?
(b) Since the inequation is incorrect, shade
the side of the line that does not contain
the point.
Find the required region for x 0.
(a) Choose a point on the x-axis, say x = 1, and
check that it satises the inequation x 0.
That is, is 1 0?
For x 0,
Test point: (1, 0)
Is 1 0? Yes
(b) Since the inequation is correct, shade the
Find the required region for y 0.
(a) Choose a point on the y-axis, say y = 1, and
check that it satises the inequation y 0. That
is, is 1 0?
For y 0,
Test point: (0, 1)
Is 1 0? Yes
(b) Since the inequation is correct, shade the
Transfer all of the above information onto a
graph. Label the corner points.
Determine the coordinates of the corner
points of the feasible region.
(a) Read the coordinates of the points A and
C from the graph.
A (0, 1.5) and C (2, 0)
(b) The coordinates of point B can be
determined by solving equations [2] and [3]
simultaneously. Write equations [2] and [3].
2x + 4y = 4 [2]
15x + 10y = 15 [3]
9
10
11
12
0
y
x
1
A
B
C
1.5
1 1.2 2
Region required
13
14
THINK WRITE
(c) Multiply equation [2] by 2.5 and call the
resultant equation [6].
[2] 2.5:
(2x + 4y = 4) 2.5
5x + 10y = 10 [6]
(d) Subtract equation [6] from [3] and solve
for x.
[3] [6]:
15x + 10y (5x + 10y) = 15 10
10x = 5
x = 0.5
(e) Substitute x = 0.5 into equation [2] and
solve for y.
Substituting x = 0.5 into [2]:
2 0.5 + 4y = 4
1 + 4y = 4
4y = 3
y = 0.75
Write the coordinates of point B. (0.5, 0.75)
Employing the corner point method,
substitute the coordinates of the corner points
into the objective function C.
C = 0.50x + 0.60y
At A (0, 1.5) C = 0.50 0 + 0.60 1.5
= 0.90
At B (0.5, 0.75) C = 0.50 0.5 + 0.60 0.75
= 0.70
At C (2, 0) C = 0.50 2 + 0.60 0
= 1.00
Select the minimum value of C. C
min.
= 0.70 at B (0.5, 0.75)
Relate the answer to the original question:
(a) We used x to denote the amount of
product A in 250 g units. Find the
amount of product A in grams.
Amount of product A = 0.5 250
= 125 g
(b) We used y to denote the amount of
product B in 250 g units. Find the amount
of product B in grams.
Amount of product B = 0.75 250
= 187.5 g
(c) Write the answer to the problem in
words.
A minimum cost of $0.70 will be spent
by using 125 grams of product A and
187.5 grams of product B.
15
16
17
In practical problems involving time, number of items and so on, variables cannot
take negative values. Therefore, in linear programming, variables such as x and y
are always positive or 0; that is, x 0 and y 0.
remember
programming
Solve the following linear programming problems, applying skills learned in the previous
exercises.
1 A rug cleaning service has designed a revolutionary treatment which involves two
chemicals, A and B. Each of these chemicals contains (among other components)
different amounts (in units per kg) of substances a, b and c as shown in the table
below.
The minimum amounts of substances a, b and c required are 20, 6 and 18 units
respectively. One kilogram of chemical A costs the company $16, while 1 kg of
chemical B costs the company $22. What is the minimum possible cost (to the nearest
dollar) of the treatment if both chemicals must be used?
2 Smelters Steel Works manufactures two types of
steel rod: type A and type B. Steel rod A takes
2 hours to make while steel rod B takes 4 hours to
make. For optimal plant utilisation, the machine
press used to make the rods must operate for a
minimum of 56 hours over a 1-week period. At
least 6 of each type of rod must be made weekly
but no more than 16 of steel rod A and no more
than 10 of steel rod B can be made per week.
a If the prot on steel rod A is $300 and the
prot on steel rod B is $900, how many rods of
each type must be manufactured to obtain a
maximum prot?
b What will be the maximum prot?
3 A clothing manufacturer makes two styles of uni-
form: style A and style B. Each uniform needs to
be sewn, pressed and packaged. Each style-A
uniform requires 5 minutes for sewing, 6 minutes
for pressing and 3 minutes for packaging. Each
style-B uniform requires 8 minutes for sewing,
12 minutes for pressing and 3 minutes for
packaging. The prot on each style-A uniform is
$7 and $12 on each style-B uniform. The times
required for the sewing, pressing and packaging,
at most, are 480, 600 and 450 minutes
respectively.
Substance
Number of units (per kg)
Chemical A Chemical B
a 10 5
b 1 2
c 2 12
7G
WORKED
Example
11
eBookplus eBookplus
Digital doc:
Spreadsheet
a Specify the variables.
b Write the 5 constraints.
c Specify the objective function.
d Determine how many uniforms of each style should be made each day to maximise
the manufacturers daily prot.
e What is the maximum daily prot?
4 The members of a local football team require a diet which provides them with the daily
minimum requirements of essential vitamins A, B and C. The daily minimum require-
ments are 36 units of A, 12 units of B and 8 units of C (per kilogram). These require-
ments could be met if two products, Zest and Boom, were combined. The amounts of
vitamins (in units per kilogram) are shown in the table below:
a How many kilograms of products Zest and Boom should be used to keep costs to a
minimum, given that product Zest costs $4.80 per kilogram and product Boom costs
$3.50 per kilogram?
b What is the minimum cost?
5 Luxurious Limousine Services offer two types of chauffeured limousine package: the
Gold Pass and the Classic. The number of Gold Pass packages ranges from 140 to 200
while the number of Classic packages ranges from 80 to 120. Gold Pass packages are
at least twice as popular as Classic packages. A prot of $20 is made on each Gold Pass
ride while a prot of $10 is made on each Classic ride.
a Which combination of chauffeur-driven rides will yield a maximum prot?
6 Let It Grow industries have been developing a new type of fertiliser in their two pro-
duction plants. The fertiliser requires 3 ingredients: I
1
, I
2
and I
3
. The amounts of these
ingredients (in units per tonne) available at each plant are provided in the table below:
A minimum amount of 15 units of I
1
is available while a maximum of 27 and
50 units of I
2
and I
3
respectively are available. Plant A yields a prot of $270 per day
and plant B yields a prot of $500.
a How many tonnes of fertiliser should be produced daily at each plant to yield a
maximum prot?
Product A B C
Zest 12 3 1
Boom 6 4 8
Production plant I
1
I
2
I
3
Plant A 5 9 5
Plant B 3 3 10
Deck chairs
For the situation presented on pages 380 and 381 of this chapter, use linear
programming to solve the problem given. That is, how many chairs of each type
should be made weekly to maximise the manufacturers prot?
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
The graph of an inequation containing a or sign is a closed half-plane; a solid
line indicates that the points on the line are included in the region required.
The graph of an inequation containing a < or > sign is an open half-plane. The
points on the line are not included in the region required. This is indicated by using
a dotted line.
To nd which side of the line contains points that make the inequation a true
statement, a test point is used.
The required region is shaded.
Graphs of simultaneous linear equations
The graphical solution to the pair of simultaneous linear equations is given by the
point of intersection of the two lines representing those equations.
The coordinates of the point of intersection can be read from the graph, or found
using algebra.
To solve simultaneous linear equations algebraically, either the elimination or the
substitution method is used.
Graphs of simultaneous linear inequations
The graphical solution to a pair of simultaneous linear inequations is given by the
intersection of the two half-planes which represent those inequations.
Graphs of systems of linear inequations
A group of simultaneous linear inequations is called a system.
The graphical solution to the systems of linear inequations is given by the area
common to all half-planes representing those inequations.
The shaded area (region required) together with the boundary polygon is called the
feasible region.
The vertices of the polygon (feasible region) are referred to as feasible points or
corner points.
Solving linear programming problems
To solve linear programming problems:
1. Dene the variables.
2. Write the constraints (inequations) in terms of the variables.
3. Dene the objective function (the linear function to be minimised or
maximised).
4. Obtain the feasible region by sketching graphs of the constraints.
5. Find the coordinates of the corner points.
6. Use either the sliding-line or corner point method to nd the maximum/
minimum value of the objective function.
Only solid lines are used when sketching the constraints.
In linear programming, variables always take positive values or 0.
summary
1
The region required (shaded region) for the inequation x > 6 is represented by:
2 Sketch the graphs to represent the following inequations. Shade the required region.
a 3 x 0 b y + 1 < 2 c 3x 2y 6
3
The region required (shaded region) for the inequation y < x is represented by:
4
The region required (shaded region) for the inequation 2x + y 6 is represented by:
5
The region required (shaded region) for the graph at right can be
dened by the inequation:
A y < 2x + 4 B y 2x + 4 C y > 2x + 4
D y > 2x + 4 E y 2x + 4
6 Sketch the graphs of, and solve, the following pair of simultaneous equations. Use an
appropriate method to verify your solution algebraically.
y + 3x = 9
3y + 4x = 12
A B C D E
A B C D E
A B C D E
CHAPTER
review
7A
multiple choice
0
x
y
6
Region required
0
x
y
6
Region required
0
x
y
6
Region required
0
x
y
6
Region required
0
x
y
6
Region required
7A
7A
multiple choice
0
x
y
Region required
0
x
y
Region required
0
x
y
Region required
0
x
y
Region required
0
x
y
Region required
multiple choice
7A
0
x
y
3
6
Region required
0
x
y
3
6
Region required
0
x
y
3
6
Region required
0
x
y
3
6
Region required
0
x
y
3
6
Region required
multiple choice
7A
y
x
2
4
0
Region required
7B
7
For the simultaneous equations
4x 8y = 8
2x + 6y = 12
8 Sketch the graphs of the following pair of simultaneous inequations and shade the required
region.
2y + 5x 6
x y 4
9
The graph which best displays the required (shaded) region of the simultaneous inequations
3x + 2y 18, 4x + 6y 30 is shown in:
10 The shaded region ABC on the graph at right is the solution set for a
system of 3 simultaneous linear inequations. Find the 3 inequations.
11 The shaded region OABCD on the graph at right is the solution set for
a system of 5 simultaneous linear inequations. Find the 5 inequations.
12 Graph the region required (shaded region) for the following systems of inequations and
specify all corner points.
a x 0, y 0, 3y 2x 7 and 2y + 5x 10
b x 0, y 0, 6x + 8y 24 and 8x + 12y 48
A B C D E
A B C D E
7B
multiple choice
(3 , )
x
y
2 6
0
2
1
3
5
4
5
x
y
2
0
6
1
(2, 0)
x
y
6
0
2
1
(0, 2)
x
y
2
0
6
2
1
( , 3 )
4
5
3
5
( , )
x
y
6
2
0
1
2
6
5
8
5
7C
1
2
---
7C
multiple choice
Region required
y
x
0
9
5
6 7
1
2
Region required
y
x
9
5
0
7
6
1
2
Region required
y
x
9
5
0
7
6
1
2
Region required
y
x
6
0
5
7
9
1
2
Region required
y
x
6
0
5
7
9
1
2
x
0
A B
y
Region required
400
200
400
C
7D
x
O
0
A
B
C
D
300 400 600
400
300
600
y
Region required
7D
7D
13
The shaded region which best represents the system of inequations
x 0, y 0, x + y 8 and y 2x 4 is shown in:
A B C
D E
14 Graph the region required (shaded region) for the following system of inequations:
x 0, y 0, 2y 6x 12, 2y + 4x 14 and 2y 2x 2.
a Specify each of the corner points.
b If the prot is given by P = 5x + 4y, determine the maximum prot subject to the above
constraints.
15
The region required for a system of inequations is given by the
graph at right. If the revenue (in dollars) is given by R = 4x + 3y,
the maximum revenue will be:
A $8 B $32 C $34 D $36 E $38
16 a Maximise the objective function D = 4x + 5y, subject to the system
of inequations shown in the graph at right.
b Minimise the objective function C = 6x 2y, subject to the system of
inequations shown in the graph at right.
7D
multiple choice
2
Region required
y
x
4
0
8
8
2
Region required
y
x
4
0
8
8
2
Region required
y
x
4
0
8
8
2
Region required
y
x
4
0
8
8
Region required
y
x
2
0
8
8
4
7D,E
7E
multiple choice
Region required
y
x
2
0
8
(6, 4)
2
8
7E
x
0
B
(8, 2)
y
Region required
(0, 3)
(6, 6)
C
A
x
0
y
(1, 5)
(4, 0)
(2, 6)
(6, 2)
B
A
C
D
Region required
17
The maximum value of the objective function S, where S = 5y x, for
the feasible region at right is:
A 2 B 9 C 11 D 14.5 E 27
18 For which values of x and y will the objective function P = 10x + 12y be a minimum, subject to:
2x + 6y 24
2x + 4y 18
x 0
y 0?
19
The minimum value of the objective function C, where C = 3x 2y, for
the feasible region at right is:
A 6 B 5 C 2 D 4.5 E 10
20 For which values of x and y will the objective function C = 100x + 1200y be a maximum,
subject to:
7x + 5y 35
5x + 10y 34
x 2
x 0
y 0?
Questions 2123 refer to the following information. A drink manufacturer produces two types
of sports drink. Each month, at least 300 litres of type A sports drink and 500 litres of type B
sports drink must be produced to meet demand. The factory must produce at least 900 litres of
sports drink but no more than 1400 litres.
21
If x represents the amount in litres of sports drink A, and y represents the amount in litres of
sports drink B, then the system of inequations for the above information is:
A x 300, y 500, x + y 900, x + y 1400
B x 300, y 500, x + y 900, x + y 1400
C x 300, y 500, x + y 900, x + y 1400
D x 300, y 500, x + y 900, x + y 1400
E x 300, y 500, x + y 900, x + y 1400
22
The shaded region which best represents the system of inequations is shown in:
A B C D E
y
x
0
(3, 3 )
(0, 1)
(4, 1)
1
2
Region required
multiple choice
7E
7E
7E
multiple choice
y
x
0
Region required
(9, 4)
(8, 7)
(1, 2) (8, 2)
(2, 6)
7E
7F
multiple choice
7F
multiple choice
y
x
0 1400 300 900
1400
900
500
Region required
y
x
0 1400 300 900
1400
900
500
Region required
y
x
0 1400 300 900
1400
900
500
Region required
y
x
0 1400 300 900
1400
900
500
Region required
y
x
0 1400 300 900
1400
900
500
Region required
23
Given that the prot on a litre of sports drink A is $1.20 and the prot on a litre of sports
drink B is $1.00, the maximum prot possible is:
24 A local factory produces runners and walking shoes. It is able to produce a minimum of
400 pairs of runners and 350 pairs of walking shoes, and must meet the weekly demand of
up to 900 pairs of shoes altogether. The prot on a pair of runners is $12.50 and on a pair of
walking shoes, $10.
a Specify the variables.
b Write the three constraints.
c If we need to maximise prot, what is the objective function?
25 Nick intends to sow o hectares of oats and w hectares of wheat on his farm. He has 35 hectares
of land available on which to sow crops. Oats requires 3 hours of labour and wheat requires
4 hours of labour per hectare, and a total of 120 hours of labour is available.
a If the prot on oats per hectare is $200 and on wheat $240, how much of each crop must
be sown to obtain the maximum prot?
b What is the maximum prot Nick can make?
c Would this change if the prot on oats per hectare became $250 and the prot on wheat
remained unchanged?
26 A company manufactures two products, A and B.
Each product must undergo three chemical processes for
the number of hours specied in the table at right.
The minimum amount of time required for
processes 1, 2 and 3 is 70, 28 and 36 hours respectively.
a Using this information, construct the three constraints.
Let x represent the number of items of product A produced.
Let y represent the number of items of product B produced.
b Are any other constraints assumed in this situation?
c Sketch the 5 constraints, shading the region required (feasible region).
The costs associated with the chemical processes on product A and product B are $300
and $200 per item respectively.
d If we want to minimise cost, what is the objective function?
e Find the minimum cost of the chemical processes associated with manufacturing the
products in question.
27 Vickis Vitamin Company sells two Vitamin C
products, C
1
and C
2
, each boosted with a certain
amount of macronutrients , and (units per
kilogram) as shown in the table at right.
Scott Scurvy has been advised by his dietitian to
combine the 2 products so that the resulting mixture
provides at least 50 units of , 28 units of and 60 units of .
If C
1
costs $3.50 per kilogram and C
2
costs $5.00 per kilogram:
a nd how Scott should combine the products to achieve minimum cost, and
b state this minimum.
A $960 B $1460 C $1500 D $1580 E $1620
7G
multiple choice
7F,G
Process A B
P1 10 5
P2 2 4
P3 3 3
Macronutrients C
1
C
2
10 5
4 4
6 15
28 Sklo, a glass and crystalware company, is about to launch a new line of products called
Spring Blooms. All products in this line (cake platters, cheese platters and fruit bowls) feature
the same ower design. The company plans to produce a trial batch of 2100 items. Based on
previous experience, they know that the number of cake platters should be at least double the
number of cheese platters and that the demand for fruit bowls will not exceed 600. They also
need to produce at least 200 cheese platters and no more than 1600 cake platters.
a Let x be the number of cake platters and let y be the number of cheese platters produced.
Write the constraints to represent the information.
b Sketch the constraints on a set of axes. Shade the feasible region.
c Find the coordinates of the corner points of the feasible region.
Assuming that every item produced will be sold, the company can make a prot of $24
on every cake platter, $18 on every cheese platter and $21.50 on every fruit bowl sold.
d If the Sklo company wishes to maximise their prot, write the objective function.
e Find the quantities of each type of merchandise that need to be produced and sold in
order to maximise the prot.
f State the maximum prot.
29 Chantelle, a discerning cat, likes two types of dry food produced by the Superior Cat Food
company: Chicken Bites and Fish Bites. Each of these two products contains three main
nutrients (A, B and C), essential for healthy teeth and shiny fur. Chicken Bites contain 3% of
nutrient A, 5% of nutrient B and 5% of nutrient C; Fish Bites contain 5% of nutrient A, 8% of
nutrient B and 2.5% of nutrient C. Chantelle needs at least 80 g of dry food every day, and her
minimum daily requirements of the A, B and C nutrients are 2.5 g, 4.5 g and 3 g respectively.
a Let x represent the quantity (in grams) of Chicken Bites and let y represent the quantity
(in grams) of Fish Bites fed to Chantelle on a daily basis. Write 6 constraints to represent
the information.
b Sketch the constraints, shading the feasible region.
c Find the coordinates of the corner points of the feasible region.
Alan, the local vet, sells both of Chantelles favourite Superior Cat Food products at the
following prices: $12 for a 1-kg packet of Chicken Bites and $16 for a 1-kg packet of Fish
Bites.
d Elena, Chantelles owner, wants to minimise the cost of her cats food. Write the
objective function that can be used to help Elena achieve her goal.
e Use the objective function from part d to nd the daily quantities of each type of food
that Chantelle needs to be fed in order to minimise the cost.
f What is the minimum cost?
During Chantelles annual health-check, Alan told Elena that Fish Bites are now available in
1.5-kg packets and can be purchased from him at $21 per packet. Elena quickly calculated
that it would be cheaper to buy these new, larger packets of Fish Bites.
g Construct a new function for the cost of pet food.
h Calculate the new amounts of each type of food needed to minimise the cost.
i Find the new minimum daily cost of Chantelles food.
Digital doc:
Test Yourself
Chapter 7
eBookplus eBookplus
Digital doc
SkillSHEET 7.1: Solving linear inequations
(page 386)
Tutorial
Int-0482: Watch how to graph an inequation
(page 383)
Interactivity
Sketching inequations int-0083: Consolidate your
understanding of sketching inequations
(page 386)
Digital docs
SkillSHEET 7.2: Practise solving simultaneous
equations (page 396)
WorkSHEET 7.1: Graphs of simultaneous linear
inequations (page 396)
Tutorial
Int-0483: Watch how to solve simultaneous
linear inequations (page 397)
Digital docs
SkillSHEET 7.3: Practise using vertices of feasible
regions (page 406)
SkillSHEET 7.4: Practise using the sliding line
method (page 406)
SkillSHEET 7.5: Practise using the corner point
method (page 406)
Spreadsheet 068: Investigate linear programming
(page 406)
WorkSHEET 7.2: Maximise and minimise linear
functions (page 406)
Digital doc
(page 409)
Tutorial
Int-0484: Watch how to maximise the
objective function (page 407)
Interactivity
Applications of linear programming int-0192:
Consolidate your understanding of linear
programming (page 409)
Digital doc
(page 417)
Tutorial
Int-0485: Watch how to solve a linear
programming problem (page 413)
Digital doc
7A Graphs of linear inequations
WE3
7C Graphs of simultaneous linear inequations
7D Graphs of systems of linear inequations
WE7
7E Maximising and minimising linear functions
7F Solving linear programming problems
WE10
7G Further applications of linear programming
WE11
Chapter review
www.jacplus.com.au
syllabus
reference
Elective topic
Operations research
networks and queuing
In this
chapter
8A Networks, nodes and arcs
8B Minimal spanning trees
8C Shortest paths
8D Network ow

8

Networks
428


Introduction to networks

Mathematical models may
be computer programs,
drawings, a system of
equations or a combi-
nation of these. Through
models, people attempt to
understand real situations.
A postman plans the
shortest delivery route or a
builder schedules jobs on
a large construction pro-
ject so that the formwork
is done as soon as the
foundations are completed
and the plasterers do not
arrive before the walls
have gone up.
Models allow these
people to think about and
plan tasks before actually
doing them.
In particular

operations
research

is the science of
planning and executing an
operation to make the
most economical use of
available resources.

Networks, nodes and arcs

Networks are maps that can represent an amazing variety of different things: simplied
maps, relationships between people, sub-tasks in a building project, computer terminals
or the ow of trafc through a city. In each case the network provides a means of
studying real-life situations so that decisions can be made. When drawing a network,
irrelevant information, such as bends in the roads of a map, is ignored.

1. A network is a collection of objects connected to each other in some way.
2. Networks are made up of

nodes

joined by

arcs

. If nodes are connected they are
joined by an arc.
3. When the arcs have arrows they are called

directed networks

and travel is
possible only in the direction of the arrows.

There are many examples where networks can be used to model a situation. The rst
worked example uses a network to plan a drive that takes the shortest possible path or
distance.
The

network

can be drawn and each

node

labelled. A path is a specic set of

arcs

connecting nodes and can be represented by the letters in the nodes, as we will see.

TransLink Transit Authority 2009
C h a p t e r 8 N e t w o r k s

429

If Efe and George were more concerned with time, rather than distance, they might
have consulted their travel adviser about the times for each of these stages and redrawn
the network with the arcs representing average times for travelling on each connecting
road. This network would help them to nd the shortest time.
George and Efe want to drive from Airlie to Gillespie
using the map at right.
a Draw a network which represents the map.
b Given that each road taken must bring them
closer to Gillespie, list the number of ways from
Airlie to Gillespie. How many ways are possible?
c Identify the shortest path from the possible routes
in b.
THINK WRITE/DRAW
a Represent towns with circles,
called nodes, labelled with the
rst letter of the town.
a
Ignore the bends in the roads and
use straight lines to represent
roads connecting the towns.
Check that towns not connected
by roads on the map are not
joined with an arc.
b Each road taken from Airlie must
go towards Gillespie. Indicate the
direction on each arc with an
arrow.
b
Use the network to list the
number of ways from A to G.
ABDEG
ABDFG
ABEG
ACDEG
ACDFG
ACFG
Answer the question. There are 6 ways to go from Airlie to Gillespie.
c Add the lengths of the nodes to
calculate the distances of the
6 routes in part b.
c ABDEG (60 + 46 + 41 + 54) 201 km
ABDFG 204 km
ABEG 197 km
ACDEG 200 km
ACDFG 203 km
ACFG 184 km
Answer the question. The shortest path is ACFG: Airlie to
Charles to Friday to Gillespie.
Charles
Friday
Gillespie
Ellis
Barnard
Davis Airlie
Moon Mountain
Lake Kawana
46 km
83 km
60 km
66 km 39 km
68 km
50 km
54 km
48 km
41 km
1
G A
C F
B
D
E
83
68
66
39 50
48
46
60 41
54
2
3
1
G A
C F
B
D
E
83
68
66
39
50
48
46
60
41
54
2
3
1
2
1
WORKEDExample
430


So, Efe and George would plan different routes depending on whether they were inter-
ested in shortest distance or shortest time. In addition to distances and times, arcs may
also represent other relationships between nodes. In the following worked example we
look at cost relationships between nodes.
Efe consults the local travel adviser about the travel times
for the stages in the journey planned in Worked example 1.
She then redraws the network with the average time
(in minutes) taken to drive between the towns as shown
at right. Which path would take the least time and what is
that time?
THINK WRITE
List all the feasible paths and the times
they will take.
A-B-D-E-G 153 min
A-B-D-F-G 155 min
A-B-E-G 153 min
A-C-D-E-G 151 min
A-C-D-F-G 153 min
A-C-F-G 156 min
The path of least time is ACDEG. The path ACDEG takes 151 min, the least time.
G A
C F
B
D
E
67
68
50
29
38
36
36
45
31
41
1
2
2
WORKEDExample
The costs of connecting various locations on a university campus with computer cable are
given in the table below. A blank space indicates no direct connection.
Draw a network to represent this situation, showing the cost of connection along each arc.
A B C D E
A 4000 5000 3000
B 1500 2200 4500
C 2200 1500
D 2500
THINK WRITE/DRAW
There are 5 nodes. Draw them as
labelled circles. Because A and C have
3 connections, put them on the outside.
1
A
C
B
D
E
3
WORKEDExample

431

Note:

Branch is an alternative term for arc.


1

Examine the network at right. (All the lengths are in metres.)

a

Which is the longest path?

b

Which is the shortest path?

2

A traveller plans a journey from Ulawatu to
Bargara (shown on the road map at right).

a

Draw a network to represent this situation.

b

Calculate the longest path if no road is
travelled twice.

c

Calculate the shortest path.

d

The travelling times between each town are:
UlawatuYallingup 85 min
UlawatuBlack Rock 75 min
YallingupAngourie 80 min
Black RockAngourie 82 min
YallingupBargara 120 min
AngourieBargara 34 min.

i

Draw a network of this situation showing
the time taken to travel between towns on
each arc of the network.

ii

Calculate the longest time taken to travel
from Ulawatu to Bargara, assuming you
dont return to the same place twice.
THINK WRITE/DRAW
From the table insert, in a systematic
way, draw each arc and label each arc
with its cost.
2
A
C
B
D
E
5000
2200
4000
3000
1500
4500
1500
2500
2200
1. A network is a collection of objects connected to each other in some specic way.
2. A network consists of nodes which may be connected by arcs.
3. In a directed network, the arcs will have a direction indicated by arrows.
4. Networks can be used to model situations and calculate shortest paths.
remember
8A
WORKED
Example
1c
A
B
C
E
D
3 m
6 m
5 m
9 m
4 m
WORKED
Example
1
Yallingup
Bargara
Angourie
Black Rock
Ulawatu
120 km
118 km
100 km
109 km
45 km
160 km
432


iii

Calculate the shortest time taken to travel from Ulawatu to Bargara.

iv

Complete the table showing the shortest distance between each of the towns.

v

Produce a similar table showing the travelling times between each of the towns
shown on the map.

3

A traveller plans a journey from Renoir to
Gauguin. The distances between various nearby
towns are shown on the map at right.

a

Calculate the shortest path.

b

The travelling times between the following
towns are:
RenoirPissarro 47 min
RenoirMonet 44 min
MonetCezanne 40 min
PissarroCezanne 45 min
PissarroVan Gogh 34 min
PissarroMatisse 75 min
PissarroMonet 25 min
CezanneVan Gogh 20 min
Van GoghMatisse 38 min
CezanneGauguin 59 min
MatisseGauguin 28 min

i

Draw a network of this situation showing the time taken to travel between towns
on each arc of the network.

ii

Calculate the longest time to travel from Renoir to Gauguin, without returning
to the same town twice.

iii

Calculate the shortest time to travel from Renoir to Gauguin.

c

Complete the table below showing the shortest distance between each of the towns.

d

Produce a similar table showing the travelling times between each of the towns
shown on the map.

Ulawatu Yallingup Black Rock Angourie Bargara
Ulawatu

120 100 209

Yallingup

220

Black Rock

Angourie

Renoir Pissarro Monet Cezanne
Van
Gogh Matisse Gauguin
Renoir

179

Pissarro

41 123

Monet

Cezanne

Van Gogh

Matisse

WORKED
Example
2
Pissarro
Renoir
Monet
Cezanne
Gauguin
Van Gogh
Matisse
60
38
75
30
65
46
46
41
58
62
85

433

4

The cost of trips on McFlahertys Bus service are given in the table below.

a

Draw a network representing this information.

b

What is the minimum cost of travelling from Port St to Tork Rd?

c

What is the minimum cost of travelling from Bell St to Port St?

5

The distances, in kilometres, between towns in a region are given in the table below.

Note:

Where a blank appears no direct link between the towns exists.
In a big storm the bridge on the Armida to Beech road was washed out. How far is the
journey from Beech to Armida now?

A

163 km

B

128 km

C

189 km

D

154 km

Minimal spanning trees

The diagram at right represents a farm complex.
Each site needs to be connected directly or
indirectly to the transformer so that it can get
electrical power. For example, the garage can get
its power directly from the transformer or indirectly
from the house, if the house is connected. The
numbers represent the distance between each
site. How should the connections be arranged so
that the minimum length of cabling is used?
To answer this question in a systematic way
we consider the following aspects of networks.
A

tree

is a series of connections in a network that does not contain a loop.
A

spanning tree

in a network is a tree that contains each node.

Port St Land St Tork Rd Bell St Key St
Port St

2.40 1.80

Land St

2.40 1.50

Tork Rd

1.80 1.50

Bell St

2.00

Grantha Tamwor Armida Beech Kianga
Grantha

85 104 122

Tamwor

43 100

Armida

85
WORKED
Example
3
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Digital doc:
SkillSHEET 8.1
Constructing networks
multiple choice
Sheds Workshop
250
240
200 250
350
390
400 350
150 250
Garage
Transformer
200
Pump House
434


To identify a minimal spanning tree, we use the minimal spanning tree algorithm
which has the following steps.
Step 1 Choose any node at random and connect it to its closest neighbour.
Step 2 Choose an unconnected node which is the closest to any connected node.
Connect this node to the nearest connected node. (If two or more nodes
are nearest; that is have the same value, just select any one.)
Step 3 Repeat Step 2 until all the nodes are connected.

The

minimal spanning tree algorithm

can be used to determine the least length of
cable needed to connect each building of the farm complex considered above.
Find the minimal spanning tree to determine the
minimum amount of cable needed to connect all the
buildings in this farm complex to the transformer.
Distances between locations are shown in this plan
and are in metres.
THINK WRITE/DRAW
Draw a network with nodes using the rst
letter of each building.
Use dotted lines for the arcs and label each
arc with distances between the nodes.
Start with the transformer and nd the
shortest arc. The unconnected node closest to
T is P, so join T to P with an arc.
Find the unconnected node closest to P or T.
It is G. Connect P and G with an arc.
Find the unconnected node closest to P, T or
G. It is W. Connect G and W with an arc.
Find the unconnected node closest to P, T, G
or W. It is H. Connect W and H.
The sheds, S, are still not connected. Find the
node closest to P, T, G, W or H which is
closest to the unconnected node S. Connect
W and S with an arc.
Add up the lengths in the minimal spanning
tree.
350 + 150 + 200 + 200 + 240 = 1140
Answer the question. The minimal length of cable to connect
the buildings is 1140 m.
Sheds Workshop
250
240
200 250
350
390
400 350
150 250
Garage
Transformer
200
Pump House
1
2
S W
H
G
P
T
240
200
200
400
350
250
250
250
150
350
390
3
4
5
6
7
S W
H
G
P
T
240
200
200
150
350
8
9
4
WORKEDExample
C h a p t e r 8 N e t w o r k s 435
For the minimal spanning tree in the previous worked example, it does not matter
which node was used as the starting point. The same spanning tree would have resulted.
However, suppose that the distance between the sheds and the pump had been 240 m
the same distance from the sheds to the workshop. Then we could have chosen the nal
arc as either SW or SP but not both. However, the total length of the minimal spanning
tree would have been the same.
History
of mathematics
J OHN FORBES NASH ( 1 9 2 8 )
When the movie A Beautiful Mind won an
Oscar for best lm in 2002, John Nash was in
the audience. The movie, based on a book by
the same name, is his story.
John Nash was born in Blueeld, West
Virginia in the United States. His
schoolteachers did not recognise his brilliance
and they focussed on his lack of social skills.
His mother was a schoolteacher who
encouraged his love of books and
experiments. One of his chemistry
experiments with explosives caused the death
of a school friend. He enjoyed Comptons
Pictured Encyclopedia, and the book, Men of
Mathematics by E T Bell, rst excited him
about mathematics. He succeeded in proving
difcult mathematical problems such as
Fermats Theorem for himself.
He entered Carnegie Technical College in
Pittsburgh to follow his fathers footsteps in
engineering. He moved to chemistry to avoid
the rigidity of mechanical drawing. Then,
encouraged by the mathematics faculty, he
moved from chemistry to major in
mathematics, realising that it was possible to
make a good career in America as a
mathematician.
He excelled in mathematics and graduated
with an MS as well as a BS because of his
advanced mathematical knowledge. On
graduation from Carnegie, where an elective
course in international economics inuenced
his mathematical ideas, he was offered
fellowships at both Harvard and Princeton.
In 1948, he chose Princeton where he was
closer to his family in Blueeld. He avoided
lectures and studied on his own, and was full
of mathematical ideas. His interest in game
theory grew and he developed the mathematics
of equilibrium strategies to predict behaviour.
In two papers Equilibrium Points in n-person
Games and Non-cooperative Games, Nash
proved the existence of a strategic equilibrium
for non-cooperative games, the Nash
equilibrium, and suggested approaching the
study of cooperative games by their reduction
to non-cooperative form. In his two papers on
bargaining theory, he proved the existence of
the Nash bargaining solution and provided
the rst execution of the Nash program.
He was awarded the Nobel Prize in
Economic Science in 1994, for this work on
game theory 45 years earlier.
In the movie, A Beautiful Mind, we see a
version of how his ideas were stimulated by
thinking about non-predictable strategies in a
bar scene. In another scene we see him
(Continued)
mapping the interactions between pigeons
and saying that he is developing an algorithm
to predict their behaviour. An algorithm is a
step-by-step procedure for a particular
mathematical problem and is the idea that lies
at the heart of all the computer programming
and the code which drives digital computers.
After obtaining his degree in 1950, he
worked as an instructor at Princeton but
moved to the mathematics faculty of
Massachusetts Institute of Technology (MIT)
where he met his wife, Alicia, a physics
graduate. In 1958 he was described as the
most promising mathematician in the world.
He became mentally disturbed in 1959 when
Alicia was pregnant.
Nash attributes his recovery from mental
illness to a determined effort to think
rationally, aided by light mathematical work.
He rejected his delusions and in his
acceptance speech for the Nobel Prize in
1994 said, I am still making the effort and it
is conceivable that with the gap period of
about 25 years of partially deluded thinking
providing a sort of vacation, my situation
may be atypical. Thus I have hopes of being
able to achieve something of value through
my current studies or with any new ideas that
come in the future.
In 1999 John Nash was also awarded the
Leroy P Steele Prize by the American
Mathematical Society for contributions to
research.
Questions
1. Which book rst stimulated John Nashs
interest in mathematics?
2. Which two prizes did John Nash receive?
3. What is an algorithm?
Research
1. Find out about game theory.
2. What opportunities are there to study
mathematics after nishing school?
The cost, in dollars, of connecting 7 ofces with a computer network is given in the table.
Use the minimal spanning tree algorithm to calculate the minimum cost of connecting the
ofces.
A B C D E F
A 45 70 100 65 140
B 150 50 90 95
C 100 85 50
D 40 55
E 70
THINK WRITE/DRAW
Draw a network to represent the
information given in the table.
Select any starting point, say C.
1
2
A
C D
F B
E
45
70
100
140
150
50
50
100
85
40
70
55
90
95
65
5
WORKEDExample
THINK WRITE/DRAW
Identify the shortest arc connected to C.
This is arc CF.
Identify the shortest arc connected to C
or F to an unconnected node. This is arc
FD.
Continue, using the minimal spanning
algorithm to get the gure opposite.
Use the minimal spanning tree to
answer the question.
The minimum cost of linking the ofces is
$45 + $50 + $50 + $55 + $40 = $240.
3
A
C D
F B
E
45
70
100
140
150
50
50
100
85
40
70
55
90
95
65
4
A
C D
F B
E
45
70
100
140
150
50
50
100
85
40
70
55
90
95
65
5
A
C D
F B
E
45
70
100
140
150
50
50
100
85
40
70
55
90
95
65
6
Minimal spanning trees
1 Find the minimal spanning tree for each of the following networks.
a b
c d
2 The rail authority plans to connect the country
centres shown with a rail network (distances are
in kilometres). What is the minimum length of
track required to achieve this? Use a minimal
spanning tree algorithm as follows.
a Begin at Pallas and connect it to its nearest
neighbour. Which town is this?
b Which unconnected town is closest to Pallas
or to the town selected in a?
c Connect this town to the existing link in the
shortest way possible.
d Continue by connecting the closest
unconnected nodes to any connected ones,
one at a time, until all nodes are connected.
1. A spanning tree connects all nodes in the network and does not contain any
loops.
2. A minimal spanning tree is the smallest spanning tree.
3. To nd the minimal spanning tree use the minimal spanning tree algorithm.
Step 2 Choose an unconnected node which is the closest to any connected
node. Connect this node to the nearest connected node.
Step 3 Repeat Step 2 until all nodes are connected.
remember
8B
WORKED
Example
4
A
B
C
D
4 8
5
9
A
B
C
D
4 6
5
4 7
A
D
B E
C
21
17
30
12
15
18
A
D
B E
C
30
40
30
40
20
15
15 20
Yule Xavier
Walga
Urchin
Sturt
Pallas
View
Zenith
Rockdale
82
88
50
79
70
80
55
52
62
55
88
65 67
65
42
50
52
3 The paths between the various cages at the
Nolonger Park Zoo are dirt and when it rains
they become muddy. The gure at right shows
all paths, with distances in metres. Management
has decided to put in concrete paths.
a What total length of path would be required if
each dotted line was to become a concrete path?
b Use the minimal spanning tree algorithm to
nd the minimum length of concrete path
that is required so that patrons could
see each exhibit and visit the kiosk without walking on a dirt path.
c Repeat the minimal spanning tree algorithm using a different starting point and
show that it does not matter where you start.
4 Use the minimal spanning tree algorithm to nd the minimal spanning tree for the
following networks.
a b
c d
5 Find the minimal spanning tree for each of the following networks.
a b c
6 A number of small, private mines have opened
up in Waller Flats and the local shire council
wants to link them by bitumen roads as
shown in the gure at right. What is the
minimum length of road that is needed?
(Assume the only connections that can be
made are those marked on the map of
Waller Flats at right.)
Monkeys
Crocodiles Lions
Birds
Entrance
Kiosk
80
60
50
60
30
70 55
50
65
65
24
23
20
30
55
31
18
23
18
B E
A
C
D
F
A
C
E
B
D
F
60
45 45 45
54 54
48 48
A B
C E
F G
40
40
50 50
23 23
20 20
30
30
D
A
B
F
E
C
D
7
8
7
6
7
4
8
6
9
6
A
D
F
G
E
C
B
17
15
18
22
13
15
20
10
18
15
12
A
D
E
G
F
C
B
14
18
17
14
22
22
10
12
10
18 8
15
A
B
I
C F
H
J
D
E
G K
5
5
8
8
8
8
5 5
5
5
8
12
12
12
5
5
Mine 4
Mine 1
Mine 2
Mine 3
Mine 7
Mine 6
Mine 5
5 km
7 km
15 km
6 km
14 km
11 km
15 km
12 km
10 km
7 In question 6 the dotted lines connecting the mines represent dirt roads. If an
inspector wants to visit all the mines and is willing to travel on dirt roads, what is the
shortest distance he or she needs to travel to visit each of them, starting from Mine 1?
8 A gas pipeline is to be connected between 5 towns so that each town has at least one
connection to the system. The gas pipeline costs $25 000 per kilometre. The distance
(in km) between the towns is given in this table.
a Find the length of the network connecting these towns in the shortest way.
b What is the cost of this connection?
9 An ofce computer system requires the linking of 8 terminals. Each terminal has to
have at least one connection with the system. The cost (in dollars) of connecting each
terminal with another is given in the table.
a What is the smallest possible cost for linking the computer terminals if each ter-
minal has at least one connection with the system?
b If each terminal is connected to every other terminal, what is the cost of the linking?
Use the network at right to answer questions 10 and 11.
The dimensions are in km.
10
Which of the following arcs are not in the minimal spanning
tree?
A AB B AC C BC D BG
11
What is the length of the minimal spanning tree?
A 120 km B 105 km C 98 km D 103 km
A B C D E
A 16 23 10 43
B 32 17 19
C 35 43
D 38
A B C D E F G H
A 35 50 75 50 100 65 105
B 100 40 65 70 90 105
C 70 60 40 55 15
D 30 40 105 100
E 55 40 30
F 25 50
G 75
WORKED
Example
5
A
F
C D E
B
G
18
40
27
12
25
18
20
15
22
18
22
multiple choice
multiple choice
Shortest paths
Given a network representing the distance between towns, consider the question, How
far is it from town A to town X?.
In earlier sections we have approached such a question using a trial and error
method. However, when networks become more complex, a systematic method is
required. The method used is called the shortest path algorithm.
Shortest path algorithm
To nd the shortest path between A and X in a network, follow these steps.
Step 1 For all nodes that are one step away from A, write the shortest distance from A
inside the circle representing the closest node.
Step 2 For all nodes which are two steps away from A, write the shortest distance
from A inside the circle representing the closest node two steps away.
Step 3 Continue in this way until X is reached.
Step 4 The shortest path can be identied by starting at X and moving back to the
node from which the minimum value at X was obtained, then continuing this
process until A is reached. This will be explored in the next worked example.
Find the shortest path from A to P in the
network at right. The units are in minutes
and represent time taken.
Note: We have placed the labels outside the
nodes so that the times can be placed inside
the circles.
THINK WRITE/DRAW
Beginning at A write inside the nodes at
B and E the shortest time taken to get to
them.
Then write in the shortest time for all
nodes which are two steps away from
A. That is, C = 4, F = 5 and I = 8.
Continue in this way until P is reached.
For example, at node J, the time from I
would be 10, so the shorter time, 9,
from F is put in the node.
Now back-track from P moving from
node to node along the arcs which
produced the minimum values. Check
to see if this is the shortest path.
This is the shortest path. Put arrows on
this path.
Write the answer. The shortest path from A to P is
ABFJKLP and is 14 minutes long.
1
A B C D
E F G
H
I J K L
M N O P
2
3 3 3 3
5 4 5 5
3 1 3 1
3
3 5 7 9
8 9 11 13
11
10 12
14
2 4
6
2
3
2
3
2
2
2
3
2
3
2
3
4
5
6
6
WORKEDExample
A B C D
E F G H
I J K L
M N O P
2
3 3 3 3
5 4 5 5
3 1 3 1
3
2
3
2
3
2
2
2
3
2
3
eBookplus eBookplus
Tutorial:
Worked example 6
int-0504
Shortest paths
1 Find the length of the shortest path from A to B in each of the following networks.
a b
c d
e f
To nd the shortest path from A to X in a network:
1. For all nodes one step away from A, write the shortest distance.
2. For all nodes two steps away from A, write the shortest distance.
3. Continue until X is reached.
The shortest path is located by starting at X and working backwards to A.
remember
8C
WORKED
Example
6
7
2
8
10
4
10 5 5
4 3
A
B
20
14
25
25
12 20
13
16
12 10 25
15
A B
23
20
30
34
34
23
16 30
18 24 45
27
A B
A
B
2
6
4
4
3
3 2 4
4 4 5
5
10 6 7
10 6 7
7 8
5
6
12
4
7
A
B
5 4
5
7
5
4
6
5
4
6
7
5
5
5
4 3
5 3
A
B
45 25 16
35 19 29
23 40 30
15 32 24
15 25 16
18 16 25
35 50 14
22
26
12
2 From the map at right, where the units are km,
answer the following questions.
a What is the shortest distance from Fourier to
Rolle?
b What is the shortest distance from Fourier to
Stokes?
c What is the shortest distance from Fourier to
Stokes travelling through Reynolds?
3 For each of the following networks, nd the shortest path from A to B.
a b
c d
e f
Aiken
Stokes
Feynman
Rolle
Ahmes
Lebesgue
Fourier
Gauss
Hardy
Reynolds
25
95
64
32
24
60
56
44
32
45
27
45
26
51
34
36
A
B
12
6
10
15
10
5
7
7
6
32
28
31
10
15
25
10
8
5
8
A
B
30
40
50
25 25
35
40
50
45
30
50
40
35
35
25
25
15
20
35
15
14
13
16
12
13 10
12
13
11
8 6
9
7
7
8
7
8 8
8 8
5 9
A
B
7
30
35
26
15
34
23 20
30
26 12
6 40
26
15 15
14
25
12
7
15 8
15 14
A
B
35
37
25
8
6
6
6
8
8 8
8 7
6
6
10
11
6
7
7
6
7
6
8
8 10
10
11
12
8
12
13
12
14
11
A
B
13
A
B
8 12 11
13 12 9
15
8
10 11
14
14 11
5
7 8
8
12
12
7 8 13
12 9
4 This table shows the travelling times in minutes between towns which are connected
directly to each other. Note: The line indicates that towns are not connected directly to
each other.
a Draw a network to show the connection of the towns by these roads.
b Find the shortest travelling time between Addisba and Eric.
This network at right represents the potential cost of a covered
walkway between various locations on a campus.
1 How many nodes are there in this network?
2 How many arcs are there in this network?
3 Which node/s have more than 4 arcs meeting?
The cost of the walkway is to be kept to a minimum but it should be possible to go from
any location to any other via a covered walkway.
4 Find the minimal spanning tree.
5 What arcs are not included in the minimal spanning tree?
6 What is the minimum cost of such an arrangement of walkways?
7 If one is to travel from D to F under cover, what path should be taken?
It is found that there was an error in the estimate for the walkway connecting A to C. The
correct value should be $3600.
8 Find the new minimal spanning tree.
9 What is the new minimum cost for a suitable arrangement of walkways?
10 If one were to travel from B to C under cover, what path should be taken?
Addisba Bundong Callop Dilger Eric
Addisba 0 50 20 25
Bundong 50 0 25 30 30
Callop 20 25 0 60
Dilger 25 30 0 70
Eric 30 60 70 0
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WorkSHEET 8.1
1
A C
B
D
E
F
3600
3000 4000
8000
6400
6400
6000
2000
4000
Network ow
An application of networks used to analyse ow of trafc or water is network ow.
These usually involve directed networks where arrows show the direction of ow. An
example is described below.
A driver starts for work in the city at 7.30 am each morning. He lives in an outer
suburb and as he travels from his driveway through a few streets in his local neighbour-
hood, there is not much trafc on the roads. As he joins the road that connects his
suburb to the next suburb, he notices an increase in the volume of the trafc. As this
two-lane road joins the four-lane freeway into the city, the ow of trafc becomes
immense. Cars are following bumper to bumper, with drivers changing lanes to drive in
the fastest lane. The costs involved, nancial and otherwise, for those who participate
in the morning rush are signicant.
It is in everyones best interest that the trafc ow smoothly and that trafc jams
be avoided at all costs. Engineers use mathematical models of network ow to ensure
smooth ow of trafc.
Flow capacities and
maximum ow
The networks starting node(s) is
called the source. This is where all
ows commence. The ow goes
through the network to the end node(s)
which is called the sink.
The ow capacity (capacity) of an
arc is the amount of ow that an arc
can allow through if it is not connected
to any other arcs.
The inow of a node is the total of
the ows of all arcs leading into the
node.
The outow of a node is the minimum
value obtained when one compares the
inow to the sum of the capacities of all
the arcs leaving the node.
Consider the following gures.
The ow capacity of the network is the total ow possible through the entire
network.
eBookplus eBookplus
Interactivity:
Maximum ow
int-0196
Source Sink
A B C
D
E
F
B
10
20
100
30
B
80
20
100
30
All ow commences at A. It is
therefore the source. All ow
converges on F indicating it is
the sink.
B has an inow of 100. The ow
capacity of the arcs leaving B is
30 + 20 + 10 = 60. The outow
is the minimum of 100 and 60,
which is 60.
B still has an inow of 100 but
now the capacity of the arcs
leaving B is 80 + 20 + 30 = 130.
The outow from B is now 100.
Consider the information presented in the following table.
a Convert the information to a network diagram, clearly indicating the direction and
quantity of the ow.
b Determine the ow capacity of the network.
c Determine whether the ow through the network is sufcient to meet the demand of all
the towns.
From To
Quantity
(kilolitres per
minute) Demand (E)
Rockybank Reservoir (R) Marginal Dam 1000
Marginal Dam (M) Freerange (F) 200 200
Marginal Dam (M) Waterlogged (W) 200 200
Marginal Dam (M) Dervishville (D) 300 300
THINK WRITE
a Construct and label the required number
of nodes. The nodes are labelled with
the names of the source of the ow and
the corresponding quantities are
recorded on the arcs.
a
b Examine the ow into and out of the
Marginal Dam node. Record the
smaller of the two at the node. This
is the maximum ow through this
point in the network.
b
Even though it is possible for the
reservoir to send 1000 kL/min (in
theory), the maximum ow that the dam
can pass on is 700 kL/min (the minimum
of the inow and the sum of the
capacities of the arcs leaving the dam).
In this case the maximum ow
through Marginal Dam is also the
maximum ow of the entire network.
Maximum ow is 700 kL/min.
R M W
F
D
E
1000
200 200
300 300
200 200
1
R M W
F
D
1000 200
300
200
2
7
WORKEDExample
eBookplus eBookplus
Tutorial:
Worked example 7
int-0508
Consider what would happen to the system if
Rockybank Reservoir continually discharged
1000 kL/min into Marginal Dam while its output
remained at 700 kL/min.
Such ow networks enable future planning.
Future demand may change, the population may
grow or a new industry that requires more water
may come to one of the towns. The next worked
example will examine such a case.
Excess ow capacity is the surplus of the
capacity of an arc less the ow into the arc.
The seven bridges of Knigsberg
On the River Pregel in the European town of Knigsberg, there were 7 bridges
arranged as below.
People wondered if it was possible to cross all 7 bridges without crossing any
bridge more than once.
Can you see if it can be done?

THINK WRITE
c Determine that the maximum ow
through Marginal Dam meets the
total ow demanded by the towns.
c
Flow through Marginal Dam = 700 kL/min
Flow demanded = 200 + 300 + 200
= 700 kL/min
If the requirements of step 1 are able
to be met, then determine that the
ow into each town is equal to the
ow demanded by them.
By inspection of the table, all town
inows equal town demands (capacity of
arcs leaving the town nodes).
1
M W
F
D
E
200 200
300 300
200 200
2
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s
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i
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s
t i g a
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Island Land
Use the information contained in Worked example 7 for this worked example. A new dairy
factory, Creamydale (C), is to be set up on the outskirts of Dervishville. The factory will
require 250 kL/min of water.
a Determine whether the original ow to Dervishville is sufcient.
b If the answer to part a is no, is there sufcient ow capacity into Marginal Dam to allow
for a new pipeline to be constructed directly to the factory to meet their demand?
c Determine the maximum ow through the network if the new pipeline was constructed.
THINK WRITE
a Add the demand of the new
factory to Dervishvilles
original ow requirements. If
this value exceeds the ow into
Dervishville then the new
demand cannot be met.
a
The new requirements exceed
the ow.
The present network is not
capable of meeting the new
demands.
b Reconstruct the network
including a new arc for the
factory after Marginal Dam.
b
Repeat step 1 from Worked
example 7 to nd the outow
of node M.
Marginal Dam inow = 1000
Marginal Dam outow
= 200 + 200 + 300 + 250
= 950
Determine if the ow is
sufcient for a new pipeline to
be constructed.
There is excess ow capacity of 300 into Marginal
Dam which is greater than the 250 demanded by
the new factory. The existing ow capacity to
Marginal Dam is sufcient.
c This answer can be gained from
part b step 2 above.
c The maximum ow through the new network
is 950 kL/min.
1
R M W
F
D
E
1000 200 200
300 300 + 250
200 200
2
M
D
E
300 550
1
R M W
F
D
C
E
1000 200 200
300
250 250
300
200 200
2
R M W
F
D
C
1000 200
300
200
250
3
8
WORKEDExample
The maximum ow through most simple networks can be determined using these
methods, but more complex networks require different methods to be used.
Network ow
1 Convert the following ow tables into network diagrams, clearly indicating the direc-
tion and quantity of the ow.
2 For node B in the network at right, state:
a the inow at B
b the arc capacities owing out of B
c the outow from B.
3 Repeat question 2 for the network at right.
a From To Flow capacity b From To Flow capacity
A
A
B
C
D
B
C
C
D
E
100
200
50
250
300
R
S
T
T
U
S
T
U
E
E
250
200
100
100
50
c From To Flow capacity d From To Flow capacity
M
M
N
N
Q
O
R
N
Q
O
R
R
E
E
20
20
15
5
10
12
12
D
D
G
G
F
F
J
H
F
G
H
J
H
J
E
E
8
8
5
3
2
6
8
8
1. In a network ow diagram, the arcs have quantities that indicate rates of ow;
for example, litres per minute, cars per second, people per hour and so on.
2. The starting node(s) from which all ows commence is called the source.
3. The ow goes through the network to the end node(s) which is called the sink.
4. The ow capacity (or capacity) of an arc is the amount of ow that an arc
would allow if it were not connected to any other arcs.
5. The ow capacity of the network is the total ow possible through the network.
6. The inow of a node is the total of the ows of all arcs leading into the node.
7. The outow of a node is the minimum of either the inow or the sum of the
capacities of all the arcs leaving the node.
8. Excess ow capacity of an arc equals the ow capacity of an arc minus the
ow into the arc.
remember
8D
WORKED
Example
7a
A
B
C
D
27 34
23 16
A C
B
D
E
4
5
3
3
4
2
2
6
4 For each of the networks in question 1, determine:
i the ow capacity
ii whether the ow through the network is sufcient to meet the demand.
5 Convert the following ow diagrams to tables as in question 1.
a b
c d
6 Calculate the capacity of each of the networks in question 5.
7 i Introduce new arcs, from the information which follows, to each of the network
diagrams produced in question 1.
ii Calculate the new network ow capacities.
8
In question 7c the outow from N is:
A 5 B 20 C 15 D 25
a From To Flow capacity b From To Flow capacity
A
A
B
C
D
B
B
C
C
D
E
E
100
200
50
250
300
100
R
S
T
T
U
S
S
T
U
E
E
T
250
200
100
100
50
100
c From To Flow capacity d From To Flow capacity
M
M
N
N
Q
O
R
N
N
Q
O
R
R
E
E
E
20
20
15
5
10
12
12
5
D
D
G
G
F
F
J
H
D
F
G
H
J
H
J
E
E
E
8
8
5
3
2
6
8
8
10
WORKED
Example
7b, c
A C
B
D
E
4
5
3
3
4
2
2
6
A C
B
D
E
4
5
3
3
4
2
2
6
A
C
B
D
E
4
5
3
7
3
8
2
6
A
C
B
D
F
E
4
5
12
7
3
7
4
8
2
6
WORKED
Example
8
eBookplus eBookplus
Digital doc:
WorkSHEET 8.2
multiple choice
Questions 1 to 4 refer to the network at right.
The network represents the distance between towns
in kilometres.
1 What is the shortest path from A to F?
2 Give the length of the shortest path from A to F.
3 Give the shortest path from B to F.
4 What is the length of the shortest path from B to F?
5 In the network at right, what is the inow at the node?
6 In the same network as question 5, what is the outow
at the node?
7 What is the excess ow capacity of
arc BC in the network at right?
Questions 8 to 10 also refer to the rst network above. This network shows the
capacity of irrigation pipes in kilolitres per hour.
8 What is the inow at C?
9 What is the outow at C?
10 What is the maximum ow in the network?
2
A C
B
D
E
F
32
20
40
20
32
30
10
15
20
20
10
40
A B
20 30
C
Trafc research
Trafc engineers often use road features and rules to slow trafc or
to make it travel more quickly.
List features that are used to:
slow trafc down
speed trafc up.
If there is a set of trafc lights near where you live or go to school:
draw a map showing the ow through the intersection
time the light phases during peak and off-peak times.
Submit an analysis of the operation of the trafc lights to the local
council.
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n
A network consists of a number of nodes connected by arcs.
When the arcs have arrows the network is called a directed network and travel is
possible only in the direction of the arrows.
Minimal spanning tree
A tree is a series of connections in a network that does not contain a loop.
A spanning tree in a network is a tree that contains each node of the network.
A minimal spanning tree is the arrangement of arcs in which every node is connected
to at least one other node in such a way as to minimise the total length of these arcs.
To nd the minimal spanning tree use the minimal spanning tree algorithm:
Step 2 Choose an unconnected node which is the closest to any connected node.
Connect this node to the nearest connected node.
Step 3 Repeat Step 2 until all the nodes are connected.
A path is a series of nodes connected by arcs.
Shortest path
The shortest path is the shortest distance from a given starting point to a given end point.
To nd the shortest path between A and X:
1. For all nodes that are one step away from A, write the shortest distance from A
inside the circle representing the node.
2. For all nodes which are two steps away from A, write the shortest distance from
A inside the circle representing the node.
3. Continue in this way until X is reached.
4. The shortest path can be identied by starting at X and moving back to the node
from which the minimum value at X was obtained, then continuing this process
until A is reached.
Network ow
A network can be used to represent the network ow of quantities such as water,
trafc or telephone calls.
Arcs indicate rates of ow.
The inow of a node is the total of the ows of all arcs leading into the node.
The outow of a node is the minimum of either the inow or the sum of the
capacities of all the arcs leaving the node.
In a network ow diagram, the arcs have quantities that indicate rates of ow, for
example, litres per minute, cars per second people per hour and so on.
The starting node(s) is called the source, from which all ows commence.
The ow goes through the network to the end node(s) which is called the sink.
The ow capacity (or capacity) of an arc is the amount of ow that an arc would
allow if it were not connected to any other arcs.
The ow capacity of the network is the total ow possible through the entire network.
Excess ow capacity equals the ow capacity of an arc minus the ow into the arc.
summary
1 For the network at right, write down:
a the number of nodes
b the number of arcs.
2 The following table represents the cost, in tens of thousands of dollars, of resurfacing roads
connecting various locations in a district. Draw a network representing this situation.
3 Describe an algorithm used to identify the minimal spanning tree.
4 Give the minimal spanning tree for the network in question 1.
5 Determine the minimal spanning tree for the gure
at right.
6 It is planned to join the towns shown on the map
at right by a rail link. Use a minimal spanning
algorithm to nd the shortest length of track
needed to connect each town by rail.
A B C D E
A 5 11 12
B 4 7
C 8
D
E
CHAPTER
review
8A
A C G
B E
D F
20
20
10
10
10
20
10
5
10
10
8A
8B
8B
8B
B E
C F
H
I
D G J
K A
15
15
30
40
30
15
30
25 15 35
15
15
25
25
30
35
30
25
20
35
30
30
8B
Brownsville
Caerleon
Freshwater
Gaine
Amesbury
Manto
Miriam
15 km
16 km
18 km
34 km
41 km
18 km
19 km
61 km
15 km
7 Identify the shortest path from A to G in question 1. What is the length of this path?
8 Identify the shortest path from A to K in question 5. What is the length of this path?
9 If the arcs in the network in question 1 represent capacity for ow, calculate the following:
a inow at C
b outow at C
c the maximum ow.
10 If the arcs in question 5 represent capacity for ow, calculate each of the following:
a inow at C
b outow at C
c maximum ow from A to K.
11 From the table at right
produce a network ow
diagram.
12 Draw the network ow
diagram for the table at
right.
8C
8C
8D
8D
8D
From To Flow quantity
A B 13
A C 6
B C 10
B D 4
C D 3
C E 14
D F 10
E F 15
8D From To Flow quantity
A B 13
A C 6
A G 16
B C 10
B D 4
B G 2
C D 3
C E 14
D F 10
E F 15
G D 3
G H 10
H F 13
Digital doc:
Test Yourself
Chapter 8
eBookplus eBookplus
Digital doc
SkillSHEET 8.1: Practise constructing networks
(page 433)
Digital doc
WorkSHEET 8.1: Perform forward and backward
scanning, determine earliest completion time,
critical paths and oat times (page 444)
Tutorial
Int-0504: Watch how to determine the
minimum spanning tree and the shortest path
(page 441)
Digital doc
WorkSHEET 8.2: Critical path analysis and
queuing (page 450)
Tutorial
Int-0508: Watch how to determine the
maximum ow of a network (page 446)
Interactivity
Maximum ow int-0196: Consolidate your
understanding of maximum ow in a directed
network (page 445)
Digital doc
8A Networks nodes and arcs
8C Shortest paths
WE6
8D Network flow
WE7
Chapter review
www.jacplus.com.au
syllabus
reference
Elective topic
Operations research
networks and queuing
In this
chapter
9A Critical path analysis
9B Critical path analysis with
backward scanning
9C Queues: one service point
9D Queues: multiple service
points

9

Critical pa

th
analysis and
queuing


458


A

Y

e a r 1 2 f


1

The table at right represents the time

taken, in minutes, to travel between
various stops on a bus route.
Draw a directed network to represent
this information.

2

The distances between towns in a region are shown in

the netw

ork at right.

a

Find the shortest path from A to G.

b

Find the longest path from A to G if the path
cannot contain a loop.

Critical pa

th analysis

Activity char

ts and networks

No matter what we do in our li

ves, there are many tasks that we must t into our daily
schedule. If the daily tasks are not organised, we tend to run out of time or double-book
ourselves. Similarly, operations such as major construction tasks must be efciently
planned so that the right people and materials are at the right place at the right time. If
one of these components is wrong, then time, and therefore money, is wasted. To
demonstrate the advantages of planning, we will use a simple example.
Cameron organises the things he

has

to do, to allow time for the activities he

wants

to do. (These activities include getting up early for half an hour of tai chi, and taking
his dog for a run.)
A B C D
A 20 30
B 15 35 45
C 30 50
D 40
A D
F
C
B E
G
20
20
35
30
30
15
60
40
12


C h a

p t e r 9 C r i t i c a l p a t h a n a l

y s i s a n d q u e u i n g

459

While getting ready for school in the morning, Cameron is faced with the following
problem. He has three tasks to do: downloading his email from the computer, reading
the email and eating his breakfast. The rst two tasks take 1 minute and 2 minutes
respectively, while the last takes 6 minutes in all. Cameron needs to complete all
these tasks in 7 minutes. How might he accomplish this?
Clearly he needs to be able to do some tasks simultaneously. Although this seems
like a simple problem, let us look at what might happen each minute.
More complex activities require a much greater amount of planning and analysis. A
network diagram can be used to represent the ow of activities. Let us construct such
a diagram for the problem above.
In the gure at right, the

arcs

of our network represent the three activities of down-
loading, reading and eating. The left

node

represents the start of all activity, the right
node the end of all activity and the middle node indicates
that the downloading must occur before the reading starts.
In other words, downloading (B) is the

immediate
predecessor

of reading (C).
Another way of representing this information is in an activity chart.
This chart also shows that activity B (downloading) is the immediate predecessor of
activity C (reading), and that the other two activities have no predecessors.
Let us now extend the activity chart to a more complex set of activities for
Camerons morning routine.

T

ime Activity Activity

1st minute

Do

wnload email
2nd minute Eat breakfast
3rd minute Eat breakfast
4th minute Eat breakfast
5th minute Eat breakfast Read email
6th minute Eat breakfast Read email
7th minute Eat breakfast

Acti

vity letter Activity Predecessor Time (min)

A

Eat breakf

ast 6
B Download email 1
C Read email B 2
A, 6
B, 1 C, 2


460


A

Y

e a r 1 2 f

From the activity chart below, prepare a network diagram of Camerons morning
schedule.
Activity letter Activity Predecessor Time (min)
A Prepare breakfast 4
B Cook breakfast A 2
C Eat breakfast B, E, G 6
D Have shower A 4
E Get dressed D 4
F Brush teeth C, H 2
G Download email A 1
H Read email B, E, G 2
Total time 25
THINK WRITE/DRAW
Begin the diagram by drawing the
starting node.
(a) Examine the table looking for
activities that have no predecessors.
There must be at least one of these.
Why?
Activity A has no predecessors.
(b) This activity becomes the rst arc
and is labelled with its activity letter.
(a) List all activities for which A is the
immediate predecessor.
(b) Add a node to the end of the arc for
activity A.
(c) Create one arc from this node for
each of the listed activities.
Label these arcs.
Note: The end node for each of
these activities is not drawn until
either you are certain that it is not
the immediate predecessor of any
later activities, or all activities have
been completed.
Activity B has A as an immediate predecessor.
Activity D has A as an immediate predecessor.
Activity G has A as an immediate predecessor.
Repeat step 3 for activity D.
Since it is the only immediate predecessor
of activity E, this can be added to the
diagram. Otherwise, activity E could not
be added yet.
1
2
A
3
A
D
B
G
4
A
D E
B
G
1
WORKEDExample


C h a

p t e r 9 C r i t i c a l p a t h a n a l

y s i s a n d q u e u i n g

461
An alternative network diagram is shown at
right. This diagram also indicates a direc-
tion: we start at task A, then perform tasks
B, D and G . . . and end up at task F. Because
of the implied direction, these networks are called directed graphs or directed
networks.
Now that the tasks have been reduced to a network diagram, we can use the diagram
to help Cameron reduce the total time spent on all these tasks. If all the tasks were spread
out in a straight line so that no tasks were completed at the same time then his morning
routine would take 25 minutes (see the activity chart). The diagram shows that some of
Camerons tasks can take place at the same time. Let us investigate the time savings
available.
Forward scanning
By forward scanning through a network we can calculate the earliest start times for
each activity and the earliest completion time for the whole project. The earliest start
time (EST) is the earliest that any activity can be started after all prior activities have
been completed. The EST is determined by looking at all the previous activities,
starting with the immediate predecessors, and working back to the start of the project.
An activity can start no earlier than the completion of such predecessors. Obviously, the
EST for the rst activity is 0.
THINK WRITE/DRAW
(a) Repeat step 3 for activities B and G.
They have no activities for which they
are the only predecessors. Since activity
C is preceded by all of B, G and E, join
all the arcs at a single node.
(b) Add activity C after this joining node.
Note that activity H is also preceded by
all of B, G and H but not by activity C.
Determine whether activity C and H are
independent of each other.
Since they are independent, activity H
starts from the same node as activity C.
The last activity is F, which has C and H
as its immediate predecessors. Therefore
join C and H with a node, then add an arc
for F.
Since F is the nal activity, also add the
end node.
Add the time required for each activity
next to its letter.
5
A
D
C
E
B
G
6
H
A
D
C
E
B
G
7
H
A
D
C F
E
B
G
8
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
To determine the time saving, rst determine the earliest start time for each activity.
For simplicity we will return to the initial three tasks with which Cameron was faced:
downloading and reading his email and eating his breakfast.
It is important for anybody planning many tasks to know which tasks can be delayed
and which tasks must be completed immediately. In the worked example above, the
eating must be commenced immediately if the six-minute time is to be attained,
whereas downloading the email could be delayed three minutes and still allow enough
time for it to be read while Cameron is eating.
Use forward scanning to determine the earliest completion time for Camerons initial
three tasks from Worked example 1.
THINK WRITE/DRAW
Begin with the network diagram.
Separate nodes into two halves.
The earliest start time for each node is
entered in the left-hand side of the
node. Nodes with no immediate
predecessors are given the value of
zero.
As activities B and A have no immediate pre-
decessor then their earliest start time is zero.
Move to another node and enter the
earliest start time in the left-hand side.
In the case of activity C it must wait
one minute while its immediate
predecessor, B, is completed.
The last nodes earliest start time is
entered. When more than one arc joins
at a node then the earliest start time is
the largest value of the paths to this
node. This is because all tasks along
these paths must be completed before
the job is nished.
There are two paths converging at the
nal node. The top path takes 3 minutes
to complete and the bottom path,
6 minutes. The larger value is entered
in the node.
Path BC = 1 + 2 = 3 minutes
Path A = 6 minutes
The earliest completion time is the value
in the node.
All tasks can be completed in 6 minutes.
1
A, 6
B, 1 C, 2
2
A, 6
B, 1 C, 2
3
A, 6
B, 1 C, 2
0
4
A, 6
B, 1 C, 2
1
0
5
A, 6
B, 1 C, 2
6
1
0
6
2
WORKEDExample
C h a p t e r 9 C r i t i c a l p a t h a n a l y s i s a n d q u e u i n g 463
Using all the activities listed in Camerons morning routine in Worked example 1 on
page 460, nd the earliest completion time and hence identify those tasks that may be
delayed without extending the completion time.
THINK WRITE/DRAW
Draw a directed
network with split
circles at each node.
Begin forward scanning.
The earliest start time for
the rst three nodes in the
path can be entered
immediately.
Calculate the time
values for the paths to
the fourth node. Enter
the largest value into
the left-hand side of the
node.
ADE = 4 + 4 + 4
= 12 minutes
AB = 4 + 2
= 6 minutes
AG = 4 + 1
= 5 minutes
Repeat step 3 for the
next node.
Note that calculations
begin by using the time
from the previous node
(12 minutes).
AEC = 12 + 6
AEC = 18 minutes
AEH = 12 + 2
AEH = 14 minutes
There is only one path to
the last activity (F). Add
its time requirement to
that of the previous node
(18 minutes).
ACF = 18 + 2
ACF = 20 minutes
Earliest completion
time is 20 minutes.
The time in the last
node indicates the earliest
completion time.
Earliest completion time = 20 minutes
Identify sections of the
network where there was a
choice of paths. There are
two such sections of the
network. Examine the rst
one (the 4th node).
List and total the time for
each path through this
section of the network.
The largest value indicates
the path that cannot be
delayed.
DE = 4 + 4 = 8 minutes
B = 2 minutes
G = 1 minute
Paths B and G can be delayed.
Repeat step 8 for the
next section identied
in step 7.
C = 6 minutes
H = 2 minutes
H can be delayed.
1
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
2
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
0 4
8
3
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
0 4 12
8
4
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
0 4 12 18
8
5
H, 2
A, 4
D, 4
C, 6 F, 2
E, 4
B, 2
G, 1
0 4 12 18 20
8
6
7 D, 4 E, 4
B, 2
G, 1
4 12
8
8
9
H, 2
C, 6
12 18
3
WORKEDExample
The path through the network which follows those activities that cannot be
delayed without causing the entire project to be delayed is called the critical path.
Therefore the critical path for the activities listed in Camerons morning routine
would be ADECF. It is easily seen that this path takes the longest time
(20 minutes).
Float time and latest start time
Float time is the maximum time an activity can be deferred without delaying the entire
project. The latest start time for such activities is dened as the latest time they may
be started without delaying the project.
The oat times indicate the amount of time
for which these activities can be deferred
without delaying the completion of all tasks.
Furthermore, activity B could begin up to
6 minutes (10 4) after the start of the
critical activity (D), while G could begin up
to 7 minutes (11 4) after the same critical
activity (D). There will be a more formal
treatment of oat time in the next section.
Work out the oat time for activities B and G in Worked example 3,
and hence identify the latest starting time for these activities.
THINK WRITE
List the alternative paths for the section
containing activities B and G and the
times for these alternatives.
DE = 4 + 4
= 8 minutes
B = 2 minutes
G = 1 minute
Subtract the smaller times separately
from the maximum time.
Float time for activity B = 8 2
Float time for activity B = 6 minutes
Float time for activity G = 8 1
Float time for activity G = 7 minutes
Look up the earliest completion time
for the activity on the critical path and
subtract the activities times.
DE is on the critical path.
Earliest completion time = 12 minutes
Latest start time for
activity B = 12 2
activity B = 10 minutes
Latest start time for
activity G = 12 1
activity G = 11 minutes
D, 4 E, 4
B, 2
G, 1
4 12
8
1
2
3
4
WORKEDExample
Critical path analysis
1 From each of the activity charts below, prepare a network diagram.
1. Directed networks have arcs with associated quantities which imply direction.
2. The arcs represent activities with associated quantities such as activity time,
the time it takes to complete the task. Directional arrows on the arcs indicate
the sequence of activities.
3. Nodes represent the end of one activity and the start of subsequent activities.
4. The immediate predecessor(s) of an activity is an activity (activities) that must
be completed immediately before the next activity can commence.
5. The earliest start time (EST) is the earliest that any activity can be started after
all prior activities have been completed.
6. The earliest completion time is the earliest time in which all activities in the
network can be nished after taking into account all activities that can run
simultaneously.
7. Float time is the maximum time an activity can be deferred without delaying
the entire project.
8. The latest start time for an activity is the latest time the activity may begin
without delaying the entire project.
9. Forward scanning through a network allows for the calculation of earliest start
times for each activity and the earliest completion time for the entire project.
10. The critical path is the path through the network along activities that cannot
be delayed without delaying the entire project.
remember
9A
WORKED
Example
1 a Activity Immediate predecessor
A
B
C
A
b Activity Immediate predecessor
D
E
F
G
D
D
E, F
c Activity Immediate predecessor
A
B
C
D
E
F
G
H
J
I
A
A
C
B
B
F
D, E, G
D, E, G
J, H
d Activity Immediate predecessor
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
N
O, T
P
N
S, Y
O, T
O, T
V
Y
R
U, X
2 When a personal computer is being assembled the following processes must be
performed.
a Construct a network diagram.
b Determine the minimum time in which all tasks could be completed.
3
Consider the network diagram at right. Times shown are in minutes.
a Which of the following statements is true?
A Activity A is an immediate predecessor of F.
B Activity D is an immediate predecessor of F.
C Activity F must be done before activity D.
D Activity F must be done before activity E.
b The minimum time taken to complete all activities is:
A 19 minutes B 21 minutes C 23 minutes D 28 minutes
4 Refer to the diagram at right.
a Use forward scanning to determine the earliest
completion time.
b Identify tasks that may be delayed without
increasing the earliest completion time.
5 Determine the critical path for the network in question 3.
6
Refer to the network diagram at right.
a The number required in the left-hand side of
the node after activities B and F is:
b The number required in the left-hand side of the node after activity E is:
A 5 B 9 C 10 D 18
c The earliest completion time for all tasks is:
A 27 B 24 C 21 D 18
Activity
letter Activity Predecessor
Time
(min)
A Install memory board 2
B Test hard drive A 20
C Install hard drive B, E 4
D Install I/O ports A 5
E Install CD-ROM D 3
F Test CD-ROM E 5
G Install operating system C, F 10
H Test assembled computer G 12
Total time 61
A 0 B 13 C 5 D 8
multiple choice
A, 7 C, 12
B, 9
D, 8 F, 9
E, 4
WORKED
Example
2
B, 2
C, 5
A, 3
D, 9 G, 8
H, 11
E, 6
F, 4
WORKED
Example
3
multiple choice
B, 4
C, 5
A, 3
D, 6
G, 18
H, 8
J, 6
E, 5
F, 8
0
3 9
5
7 Identify the critical path of the network in question 6.
8 a Find the earliest start time for each
node in the network shown at
right.
b Hence, nd the earliest completion
time for the project.
9 From the network diagram in question 3, produce an activity chart.
10 From the network diagram in question 6, produce an activity chart.
11 From the network in question 8, produce an activity chart.
12 For the network in question 6:
a nd the critical path
b determine which activities have oat time and hence calculate their oat times
c determine the latest start time for all non-critical activities.
13 For the network in question 8:
a nd the critical path
b determine which activities have oat time.
Critical path analysis with backward
scanning
With more-complex projects requiring the coordination of many activities, it is neces-
sary to record more information on the network diagrams and to display the infor-
mation using charts.
In the previous section the oat times and the critical path were worked out using
somewhat informal methods. In this section a more formal method will be shown to
enable oat times to be calculated and the critical path to be determined. This method
involves backward scanning.
Backward scanning
To complete critical path analysis, a procedure called backward
scanning must be performed. In forward scanning, we record
the earliest start time for an activity in the left-hand side of each
node; in backward scanning, we record the latest start time in
the right-hand side of each node that is, the latest time
that this activity can start without delaying the project.
Backward scanning starts at the end node and moves
backward through the network, subtracting the time of
each arc from the earliest start time of each succeeding
node. When two or more paths are followed back to the
same node the smallest such difference is recorded.
The results of each backward scanning step yield the latest start time for each activity.
Latest start time is the latest time an activity can start without delaying the project.
B, 15
C, 12 A, 10
D, 8
G, 6
H, 10 M, 7
L, 8 K, 9
J, 11
E, 10
F, 25
WORKED
Example
4
eBookplus eBookplus
Digital doc:
WorkSHEET 9.1
Earliest start time
Latest start time
P
8 1218
Latest start time
Earliest start time
P, 4
Latest start time = 18 4
Latest start time = 14
Latest nish time for an activity is equal to the
latest start time of the following activity.
Float time is the maximum time that an activity
can be delayed without delaying a subsequent
activity on the critical path and thus affecting the
earliest completion time.
From the above it can be seen that there is a relationship between oat time and the
other quantities, namely:
Float time = latest nish time earliest start time activity time
The technique of backward scanning is best explained with an example.
8
5
4
1218
1215
Latest start time
Latest start time = 15 5 (because it is smaller than 18 4)
Latest start time = 10
1218 8 14
Latest start time
for P
Latest finish time
for P
Earliest start time
for P
Latest start time
for Q
P, 4
Q
The network diagram at right has been constructed for a project
manager. Use forward and backward scanning to clearly display the
critical path and to list any oat times.
THINK WRITE/DRAW
Forward scan through the network and
record the earliest start time for each
activity in the left-hand side of the
appropriate node.
Begin backward scanning.
(a) Start at the end node and trace back-
wards along all paths from this node.
(b) Subtract the times of the activities
along each path from the earliest
completion time (9) and record the
value in the right-hand side of the
previous node. These values are the
latest start times for the activities
along the path.
Along path C: 9 6 = 3
Along path D: 9 2 = 7
Latest start time for activity C
= 3
Latest start time for activity D = 7
B, 5
A, 3 C, 6
D, 2
1
B, 5
A, 3 C, 6
D, 2
9 0
5
3
2
B, 5
A, 3 C, 6
D, 2
3
5
9 0
3
9
7
5
WORKEDExample
THINK WRITE/DRAW
Repeat the process backwards through the
diagram. Where two (or more) paths come
together (activities A and B), record the
smaller value in the right-hand side of the
node.
Along path A: 3 3 = 0
Along path B: 7 5 = 2
Smallest value = 0.
The critical path can now be clearly identied.
It is the path that has the same numbers in both
the left and right sides of any node. Remember
to include all such nodes in the critical path.
Critical path shown
in pink.
(a) Float times are calculated now. Construct
a table with the headings shown.
(b) Record the times from the left-hand side of
the nodes in the earliest start times (EST)
column, the times in the right-hand side of
the nodes in the latest nish times (LFT)
column as well as the activity times (T).
Calculate oat times using the equation:
Float = LFT EST T
In this example the oat times are
also the differences between the
corresponding times in the nodes.
This is not the rule in the general case.
For activity D: Float = 9 5 2 = 2
For activity C: Float = 3 0 3 = 0
For activity B: Float = 7 0 5 = 2
For activity A: Float = 3 0 3 = 0
3
B, 5
A, 3 C, 6
D, 2
9 9
3 3
0 0
5 7
4
B, 5
A, 3 C, 6
D, 2
9 9
3 3
0 0
5 7
5
Activity
Activity
time
Earliest
start
time
Latest
nish
time
Float
time
A 3 0 3 0
B 5 0 7 2
C 6 3 9 0
D 2 5 9 2
1. The latest start time is the time by which an activity must be started to avoid
delaying the entire project.
2. Float time is the maximum time an activity can be deferred without delaying
the entire project.
3. Backward scanning starts at the end node and moves backward through the
network, subtracting the time for each arc from the earliest start time of each
succeeding node.
4. The latest nish time for an activity is equal to the latest start time of the
following activity.
5. Float time = latest nish time earliest start time activity time
6. The critical path is identied by nding nodes in a critical path diagram where
the number in the left-hand side of the node equals the number in the right-
hand side of the node.
remember
Critical path analysis with
backward scanning
1 For the network diagram shown, use forward and
backward scanning to clearly display the critical path and
to list any oat times. Times are in minutes.
2 For the network diagram shown, use forward and
backward scanning to clearly display the critical path
and to list any oat times for non-critical activities.
Times are in hours.
3
The earliest completion times for questions 1 and 2 respectively, are:
A 13 min; 19 h B 17 min; 10 h
C 20 min; 12 h D 20 min; 13 h
4 Complete the gure at right by forward and
backward scanning and hence:
a determine the earliest completion time
b indicate the critical path.
Note: Times are in days.
5
The oat time for activity D in question 4 is:
A 1 day B 2 days C 3 days D 4 days
6
The latest start time for activity D in question 4 is:
A 18 days B 21 days C 22 days D 25 days
7 The manufacturing of bicycles can be considered as a 7-step process:
A Collect all the parts 12 minutes
B Paint frame 35 minutes (requires A to be completed rst)
C Assemble brakes 16 minutes (requires A to be completed rst)
D Assemble gears 20 minutes (requires B to be completed rst)
E Install brakes 12 minutes (requires C to be completed rst)
F Install seat 5 minutes (requires C to be completed rst)
G Final assembly 18 minutes (requires D and E to be completed rst)
a Construct an activity chart.
b Construct a network diagram.
c Determine the earliest completion time using forward and backward scanning.
d Determine the critical path.
9B
WORKED
Example
5
A, 12
C, 4
E, 3
B, 9
D, 11
A, 3
C, 7
E, 2 D, 6
B, 4
F, 3
G, 6
multiple choice
B, 11
A, 7
D, 3
C, 4 G, 8
F, 6
E, 12
multiple choice
multiple choice
8
In the bicycle manufac-
turing system described in
question 7, activities with
oat time are:
A A, B, C, D, E, F, G
B A, B, D, G
C C, E, F
D C only
9 In question 7, determine
the amount of time saved,
as a percentage, using the
critical path approach
versus completing each
task sequentially.
10 From the network diagram at right:
a complete a forward scan and hence
determine the earliest completion time
b complete a backward scan and hence
determine the critical path.
11 From the network diagram at right:
a forward scan to determine the earliest
completion time
b backward scan to determine the critical path
c determine the oat time for activity X.
12 A method often used in business to display
the critical path is a critical path chart, as shown.
The chart indicates that the activities
ABCFJ are the critical path. The chart
works as follows. Activities immediately to the
left are immediate predecessors. For example, A
is the immediate predecessor of B, while D is
the immediate predecessor of E and G.
The length of activity is read off the scale (days) at the top. For example, activity C
is 3 days long.
a Construct a network diagram.
b Determine the oat times for each non-critical activity. (Hint: This can be deter-
mined directly from the critical path chart.)
multiple choice
B, 4
A, 3
D, 7
C, 6
G, 12
M, 9 H, 2
F, 5 K, 10 N, 6
J, 11
L, 3
E, 8
B, 4
J, 7 D, 3
H, 5
N, 6
L, 3
Q, 5
M, 4
K, 5
E, 5
F, 9
G, 9
P, 10
X, 3
A, 15
C, 10
A
D
E
G H
B C
F
J
0 5 10
Days
15 20
All questions refer to the network at right.
1 Which activity is an immediate predecessor to E?
2 In one sentence explain the term earliest starting
time.
3 In one sentence explain the term latest starting time.
4 Give the formula for the oat time of an activity.
5 Re-draw this network to show all earliest starting times and latest nishing times.
6 State the earliest nishing time for activity C.
7 State the earliest nishing time for activity D.
8 State the latest starting time for activity E.
9 State the oat time for activity C.
10 Which activities lie on the critical path?
Queues: one service point
Terms used in queuing
Queues come in all types and sizes: long, short, fast, slow, orderly and chaotic. They
are formed by humans at an automatic bank teller machine or at the football, by cars at
the trafc lights, by planes on the ground or in the air, by telephone calls at the
exchange and by pieces of paper in an ofce.
Queues can be classied as FIFO or LIFO.
FIFO stands for rst in rst out and most of the queues formed by people take this
format. The people who are served rst are those who arrived rst. (Customers have
been known to become upset when this principle is violated.)
LIFO (last in rst out) queues may operate with the distribution of items such as nuts
and bolts. New stock is deposited in a bin on top of old stock and taken from the top as
required. Thus the latest addition to this queue is used rst.
Next time you are at a shopping centre, observe people in queues and try to identify
the following behaviours. Baulking occurs when a customer looks at a queue, decides it
is too long and leaves the store. Reneging describes the behaviour of the customer who
tires of waiting in the queue, gives up and leaves. When a number of queues are avail-
able, customers can be seen to be jockeying as they move from queue to queue trying to
nd the shortest. These behaviours have been illustrated using people at a shopping
centre but may equally apply to many other situations.
For a business or service it is crucial that queues associated with their activity be at
an optimum length. If they are too long, customers will become disgruntled and leave
and/or complain. If they are too short then the service provided is not cost effective.
1
B, 4
F,2
C, 6
A, 5
D, 8
E, 5
Through modelling, the mathematician is able to plan effective methods for serving
customers in queues.
A bank manager receives a phone call from a dissatised customer who complains
about always waiting for service at the bank. She decides to investigate. Experience has
shown that a customer arrives every 2 minutes and that the average time taken to ser-
vice customers is 3 minutes.
The time between customers arriving is called the inter-arrival time and the time
taken to serve them is called the service time.
It is clear that if the service time is longer than the inter-arrival time, then the queue
will grow longer if there is only one service point.
The next worked example analyses the growth of the queue.
Customers arrive at the bank with an inter-arrival time of 2 minutes. The service time for
each customer is 3 minutes. There is one bank ofcer serving customers.
a When the bank opens at 9.00 am customer A has just arrived. When does the next
customer, B, arrive?
b When is customer A nished?
c When is customer B nished?
d Continue the table from 9.09 am to show the arrival, queuing and service of customers
until 9.15 am.
e Using the table, calculate the length of time customer F waited in the queue.
Continued over page
Time
Customer
served Arrivals
People in
queue
Length of
queue
9.00 am A 0
9.01 am A 0
9.02 am A B B 1
9.03 am B 0
9.04 am B C C 1
9.05 am B C 1
9.06 am C D D 1
9.07 am C D, E 2
9.08 am C E E 1
9.09 am D E 1
6
WORKEDExample
The passage of customers through queues and service points can also be represented
graphically as is illustrated in the following example.
THINK WRITE
a The inter-arrival time is 2 minutes. a Customer B arrives at 9.02.
b The service time is 3 minutes. b Customer A was nished at 9.03.
c Customer B takes 3 minutes to
be served at 9.03.
c Customer B was nished at 9.06.
d
At 9.10, F arrived 2 minutes
after E.
At 9.12, D is nished, E is
served and G arrived.
At 9.14, H arrived.
At 9.15, E is nished, F is
served.
e F arrived at 9.10.
F was served at 9.15.
e Customer F waited in the queue for 5 minutes.
1
2
3
4
d
Time
Customer
served Arrivals
People in
queue
Length of
queue
9.09 am D E 1
9.10 am D F E, F 2
9.11 am D E, F 2
9.12 am E G F, G 2
9.13 am E F, G 2
9.14 am E H F, G, H 3
9.15 am F G, H 2
Use the information given in the graph to answer
the following questions.
a When did customer E arrive?
b How long did E wait in the queue?
c How many people were in the queue at 11 minutes?
d Were customers E and G in the queue at the same time?
THINK WRITE
a The arrival is indicated by a dot. a Customer E arrived at 8 minutes.
b The waiting time is indicated by the thin
line.
b Customer E waited in the queue for
4 minutes.
c Reading up from t = 11 we nd thin
lines associated with E and F.
c Two customers, E and F, were waiting in the
queue at 11 minutes.
d E was in the queue from t = 8 until
t = 12. G arrived at t = 12.
d No, customers E and G did not wait in the
queue at the same time.
2 0 3 4 5 6 7 8 10 121314 16 15 11 9 1 17
I
H
E
F
D
G
C
B
A
Arrival
Waiting time
Service time
C
u
s
t
o
m
e
r
Time (minutes)
7
WORKEDExample
Queues: one service point
1 Consider this table
which describes the
service of customers
at a petrol station.
a Copy and
complete the table
showing the
length of the
queue for the
times after
7 minutes.
b How long did
customer C wait
in the queue?
c How long did
customer H wait
to get served?
d How long did it
take to serve
customer C?
(This does not
include waiting
time.)
e What was the average service time?
f What was the average inter-arrival time? (Add the total time between arrivals and
divide by the number of arrivals. If two people arrive at the same time their inter-
arrival time is 0.)
1. The inter-arrival time is the time between the arrival of one customer and the
next.
2. Service time is the time taken to service a customer.
3. A queue will grow if the service time is greater than the inter-arrival time.
4. Use capital letters to represent customers; for example, A, B, C,
remember
9C
WORKED
Example
6
Time
(min)
Customer
served Arrivals
Length
of queue
People in
queue
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
A
A
B
B
B
C
C
D
D
D
E
E
F
G
G
G
H
B, C
D
E
F
G, H
J
K
2
2
1
2
3
2
3
4
B, C
B, C
C
C, D
C, D, E
D, E
D, E, F
E, F, G, H
2 The time-plot table shown below describes the service of customers at a pet shop.
Time is in minutes.
a Copy and complete the table showing the length of the queue for the times after
9 minutes.
b How long did customer C wait in the queue?
c How long did customer H wait to get served?
d How long did it take to serve customer C? (This does not include waiting time.)
3
The inter-arrival time for customers at the hardware store is 45 s. The number of cus-
tomers expected between 12.05 and 12.41 is:
A 27 B 36 C 48 D 54
4
The time taken to serve a customer at Famished Freds Fastburgers is 75 seconds. If
Nigelli arrives and notices there are 4 people in the queue ahead of her not
including the person who has just begun to be served, how long will it be before she
has her burgers?
A 6 min B 7.5 min C 4.5 min D 4 min
5 At the Fine Foods Delicatessen the inter-arrival time for customers is 2 minutes. The
proprietors pride themselves on their friendliness, and the average time spent serving
a customer is 3 minutes.
a Construct a time-plot table for the service of customers in this shop. Start at time = 0
with customer A just arriving. (Represent each customer with a capital letter.)
b How long will the queue be when the fth customer arrives?
c How long will this customer have to wait?
Time
Customer
served Arrivals
Length of
queue
People in
queue
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
A
A
A
A
B
B
C
D
D
D
D
E
F
G
G
G
H
C
D
E
F, G
0
1
1
2
2
2
2
3
3
4
B
B
B, C
C, D
C, D
D, E
E, F, G
E, F, G
E, F, G, H
multiple choice
multiple choice
6 A government department has only one person rostered to service customer enquiries.
Customers arrive at a rate of about 20 per hour. It takes about 6 minutes to serve each
customer.
a What is the inter-arrival time for customers?
b Do you expect a queue to form?
c Construct a time-plot table for the service of customers in this department. Use
3-min intervals.
7 Examine the graph at right.
From this graph deduce the following information.
a How long did it take to serve customer A?
b When did customer C arrive and leave?
c How long was customer C in the queue?
d What was the waiting time of customer E?
e How long was the queue at time = 7 minutes?
f How long was the queue at time = 11 minutes?
g Which customer waited the longest and for how long?
h At what time did two customers arrive at the same time?
i From this graph construct a time-plot table using the following headings.
8 Draw a graph to represent the behaviour of the queue in question 1.
9 Draw a graph to represent the behaviour of the queue in question 2.
10 The passenger ferry to Holiday Island doesnt leave until all passengers have boarded
and there are none waiting. It takes each passenger 30 seconds to buy a ticket and
board the ferry. When boarding started there were 25 passengers waiting and more
passengers were arriving at the rate of 1 every 2 minutes. How long is it before the
ferry leaves?
Time
Customer
served Arrivals
People in
queue
Length of
queue
WORKED
Example
7
2 0 3 4 5 6 7 8 10 121314 161718 15 11 9 1
E
F
D
G
C
B
A
Arrival
Waiting time
Service time
C
u
s
t
o
m
e
r
Time (minutes)
1 If customers arrive at the rate of one every 12 seconds, how many customers would
you expect in one hour?
2 If a service point can deal with 40 clients each hour, what inter-arrival time is needed
to ensure that a queue does not continue to grow?
The table below shows the progress of customers at a service point (in this case, people
entering a football game). Use the information to answer questions 3 to 10.
3 How long did it take to
serve customer B?
4 How long did it take to
serve customer C?
5 How long did customer
C wait to be served?
6 How long did customer
E wait to be served?
7 What was the greatest
length of the queue?
8 Who was in the queue
while C was being
served?
9 Who was in the queue
while E was being
served?
10 How many customers
had been completely
served in the rst four
minutes?
Time (min)
Customer
served Arrivals People in queue
0 A B, C B, C
1 B D, E C, D, E
2 B F C, D, E, F
3 C D, E, F
4 D G, H E, F, G, H
5 D I E, F, G, H, I
6 E F, G, H, I
2
Queues: multiple service points
At times it is necessary to have more than one service point to prevent queues growing
too long.
At a fast food outlet there are 20 customers waiting when the outlet opens for business. It
takes, on average, 80 seconds to serve each customer.
a If no more customers arrive and there are 5 service points operating, how long will it
take to serve these people?
b If the inter-arrival time for customers is generally 15 seconds, how many service points
are needed to prevent the length of the queue growing?
THINK WRITE
a Total time needed is 20 80 seconds. So,
divide by the number of service points, 5.
a Time to serve customers =
Time to serve customers = 320 s
Time to serve customers = 5 min 20 s
b Need the service time to be less than the
inter-arrival time.
b Service time = 80 no. of service points
Find the service time with 5 service points. Service time for 5 points = 16 seconds
Find the service time with 6 service points. Service time for 6 points = 13.7 seconds
For a queue not to grow, the service time
must be less than the inter-arrival time.
This is less than the inter-arrival time.
Therefore, 6 service points are needed.
20 80
5
------------------
1
2
3
4
8
WORKEDExample
Five people are waiting in a queue being served by one teller. On average, it takes three
minutes to serve one customer and every two minutes another customer arrives. When the
second service point opens the situation looks like this:
a At what time will customer C be served?
b When will customer D be served?
c Complete the table showing the progress of the queue in the rst 10 minutes.
d Use the table to determine for how long customer G waited in the queue.
Note: Use the convention of assigning A to the rst customer, B to the next customer etc.
Continued over page
Time (min)
Point 1
customer
Point 2
customer Arrivals
People in
queue
Length of
queue
0 A
(2 min to go)
B F C, D, E, F 4
THINK WRITE
a Customer C will be served by the rst service
point. Customer A has only two minutes to go.
a Customer C will be served after
2 minutes.
b Customer D will follow customer B. b Customer D will be served after
3 minutes.
9
WORKEDExample
Role play
In this activity the class uses the time-plot table from the previous worked example
as a script for acting out the behaviour of a queue. Students are assigned the
following roles:
1. 2 tellers
2. 11 customers (A to K)
3. 1 timekeeper
Each of the tellers sets a service point at a desk in the classroom. A point for the
head of the queue is designated. The timekeeper begins by calling the time,
beginning at 0. As soon as the timekeeper is assured that the action for a particular
time is complete, he or she will call the next time. Those not directly involved
should observe to see if the customers, tellers and timekeepers are following the
script accurately.
THINK WRITE
d G arrived at t = 2.
G was served at t = 8.
Answer the question
by subtracting.
d Customer G waited 6 minutes in the queue.
c c
Time
(min)
Point 1
customer
Point 2
customer Arrivals
People in
queue
Length of
queue
0 A
(2 to go)
B F C, D, E, F 4
At t = 1, there is no
change.
1 A B C, D, E, F 4
At t = 2, A nishes
and G arrives.
2 C B G D, E, F, G 4
At t = 3, B nishes.
3 C D E, F, G 3
At t = 4, H arrives.
4 C D H E, F, G, H 4
At t = 5, C nishes.
5 E D F, G, H 3
At t = 6, D nishes
and I arrives.
6 E F I G, H, I 3
7 E F G, H, I 3
At t = 8, E nishes
and J arrives.
8 G F J H, I, J 3
At t = 9, F nishes.
9 G H I, J 2
At t = 10, K arrives.
10 G H K I, J, K 3
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Queues: multiple service
points
1 At Loony Larrys Discount Store it takes, on average, 65 seconds to serve a customer.
At lunch time there were 18 customers waiting in the queue.
a If no more customers arrive and there are 5 service points operating, how long will
it take to serve these people?
b If the inter-arrival time for customers is generally 25 seconds, how many service
points are needed to prevent the length of the queue growing?
2 At Mikes Mechanics, a mechanic takes, on average, 2.5 hours to give a vehicle a ser-
vice. Each mechanic works for only 8 hours a day, 5 days a week. In a particular week
53 customers had
booked in to have a
service for their
vehicles. How many
mechanics need to be
on duty that week to
service this need?
3 At a banks ATM,
customers arrive, on
average, at a rate of
one every minute
and it takes 90 sec-
onds to serve each
customer. The bank
is considering intro-
ducing another ATM.
Would another
machine prevent the
queue growing?
1. The rst customer in a queue is served at the rst available service point.
2. Capital letters represent customers.
remember
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052 Generating random
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WORKED
Example
8
4
Use the above table to determine the following:
a the number of customers served from t = 0 to t = 6
b when customer G arrived
c when customer G was served
d the time customer G waited in the queue
e the time customer L waited in the queue.
5 At the First National
Bank, 2 tellers are
serving customers.
A time-plot table for
the queue is shown
at right.
a Copy and
complete the
table, showing
the length of the
queue for times
after 8 minutes.
b How long did
customer C wait
in the queue?
c How long did
customer H wait
to get served?
d How long did it
take to serve
customer C?
(This does not include waiting time.)
Time
(min)
Customer
served by
teller 1
Customer
served by
teller 2 Arrivals
Length of
queue
People in
queue
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
A
A
A
C
C
C
E
E
E
G
G
G
I
I
I
K
K
K
B
B
B
D
D
D
F
F
F
H
H
H
J
J
J
L
L
L
4
4
5
3
4
4
3
3
4
2
3
3
2
2
3
1
2
2
C, D, E, F
C, D, E, F
C, D, E, F, G
E, F, G
E, F, G, H
E, F, G, H
G, H, I
G, H, I
G, H, I, J
I, J
I, J, K
I, J, K
K, L
K, L
K, L, M
M
M, N
M, N
Time
(min)
Customer
served by
teller 1
Customer
served by
teller 2 Arrivals
Length of
queue
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
A
A
C
C
C
C
F
F
G
G
G
G
G
I
I
K
K
K
B
B
B
D
D
E
E
E
E
H
H
H
H
J
J
L
L
L
C, D, E, F
H, I
J, K
L
4
4
4
3
5
4
3
3
2
6 Research on customer behaviour at the Second National Bank has shown that the cus-
tomer inter-arrival time is 2 minutes and service time is 3 minutes.
Consider the following situation where service is provided by two service points:
a At what time will customer D be served?
b When will customer F be served?
c Complete the table, showing the progress of the queue in the rst 5 minutes.
d Use the table to determine how long customer F waited in the queue.
7
At the circus there are 8 service points serving 340 customers. Each customer requires,
on average, 30 seconds to serve. The show will not start until all customers have been
served. How long will it be before the show can start?
A Approximately 21 minutes B Approximately 15 minutes
C Approximately 17 minutes D Approximately 32 minutes
8
At the Freewill Games Athletics, spectators arrive at a rate of 250 per minute. If it takes
25 seconds to check each persons ticket, how many service points are needed if queues
are not to grow?
A 55 B 105 C 25 D 80
9 It takes a nurse 2 minutes to admin-
ister a Hepatitis B vaccine. At a work-
place where all employees are being
innoculated, the inter-arrival time of
patients is 45 seconds. If two nurses
are giving the injections, construct a
time-plot table to show the progress
of the queue that forms. Begin by
assuming that patients A and B are
being attended and there is no
waiting. Use 45-second and 2-minute
intervals for the rst 8 minutes.
Time (min)
Point 1
customer
Point 2
customer Arrivals
People in
queue
Length of
queue
0 A
(1 min to go)
B
(2 min to go)
E C, D, E 3
Call centres
1 What is a call centre? Distinguish between the purposes of inbound and
outbound calls.
2 What is a virtual call centre?
3 Discuss the role of temporary agents.
4 Conduct a class debate:
Call centres an economic marvel or a social curse.
WORKED
Example
9
multiple choice
multiple choice
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Introduction to critical path analysis
Directed networks have arcs whose associated quantity also has an implied direction.
The arcs represent activities whose associated quantity, activity time, is the time it takes
to complete the task. Directional arrows on the arcs indicate the sequence of activities.
Nodes represent the end of one activity and the start of subsequent activities.
The immediate predecessor(s) of an activity must be completed immediately before
the next activity can commence.
The earliest start time (EST) is the earliest that any activity can be started after all
prior activities have been completed.
The earliest completion time is the earliest time in which all activities in the
network can be nished after taking into account all activities that can run
simultaneously.
Forward scanning through a network allows the calculation of earliest start times
for each activity and the earliest completion time for the entire project.
The critical path is the path through the network along activities that cannot be delayed
without delaying the entire project.
In a critical path diagram, the critical path can be identied where there is the same
number in the left- and right-hand sides of any node.
Critical path analysis with backward scanning
The latest start time is the time by which an activity must be started to avoid
Float time is the maximum amount of time an activity can be deferred without
Backward scanning starts at the end node and moves backward through the
network, subtracting the time for each arc from the earliest start time of each
succeeding node.
The latest nish time for an activity is equal to the latest start time of the following
activity.
Float time = latest nish time earliest start time activity time
The critical path is the path through the network formed by nodes for which the
left-hand side value equals the right-hand side value.
Queues
Queues can be classied as FIFO (First in rst out) or LIFO (Last in rst out).
Types of queue behaviour:
Baulking a customer refuses to join a queue because it is too long.
Reneging a customer leaves a queue after waiting too long.
Jockeying a customer moves from queue to queue to pick the shortest.
Inter-arrival time is the time between the arrival of successive customers at a queue.
Capital letters are used to represent customers arriving at a queue with the
convention that the rst customer is A, the second is B and so on.
Service time is the time taken to serve a customer.
A queue will increase in length if the inter-arrival time is less than the service time.
summary
Questions 1 to 4 refer to the following table:
1
Using the table above, the activities that come before activity E are:
A D and B B A, D and B
C A, B, C and D D A, C and D
E F
2
The correct diagram for the table above is:
A
B
C
D
E None of the above.
Activity Time Immediate predecessor
A 12
B 11 A
C 13
D 24 C
E 11 D, B
F 21 E
CHAPTER
review
multiple choice
9A
9A
multiple choice
C, 13
A, 12 B, 11
D, 24
E, 11 F, 21
C, 13
A, 12 B, 11
D, 24
E, 11 F, 21
C, 13
A, 12 B, 11
D, 24
E, 11 F, 21
C, 13
A, 12 B, 11
D, 24
E, 11 F, 21
3
The earliest start time for activity E is:
A 23 B 24 C 36 D 37 E 30
4
The earliest completion time for the network is:
A 56 B 55 C 68 D 69 E 62
The precedence table below has been provided to control the movement of stock within a store
during a refit. The junior manager has been given the task of planning the operation so that the
total time taken by the project is kept to a minimum, and that staff are used most efficiently. All
time is given in hours. This table will be needed for questions 5 to 8.
5 Produce a network diagram from the information in the table.
6 Determine, by forward scanning, the earliest completion time for the ret.
7 Perform a backward scan and clearly show the critical path.
8 Copy the table, adding columns for earliest start, earliest nish and oat times. Complete
the table.
Task Time (min)
Immediate
predecessor
A 5
B 5
C 4 B
D 8 A
E 1 D, G
F 1 E
G 2 C
H 3 D
J 4 H
K 3 F, J
multiple choice
9A
9A
multiple choice
9A
9A
9B
9B
9 Consider the time-plot table which describes the service of customers at a 247 store.
a Copy and complete this table showing the people in the queue and the length of the
queue.
b How long did customer F wait to get served?
c How long did it take to serve customer C?
d What was the average service time?
e What was the average inter-arrival
time?
10 Draw a graph to represent the
information in question 5.
11 At Ticketex, people can book concert
tickets. It takes 2 minutes to serve each
customer and customers arrive at the
rate of 1 per minute. If there is only
one service point, construct a table to
show the growth of the queue over the
rst 8 minutes. Assume customer A has
just arrived at t = 0.
12 Calls arrive at a call centre at the rate
of 80 per minute and on average each
call takes 30 seconds to deal with.
a What is the inter-arrival time of
calls in seconds?
b How many service points are
needed to prevent the length of the
queue of customers growing?
Time (min)
Customer
served Arrivals
People in
queue
Length of
queue
0 A B
1 A
2 B C, D
3 C E, F
4 C
5 C G
6 D H, I
7 E
8 F J
9 F K
9C
9C
9C
9D
13 Cars arrive at a toll booth at the rate of 1000 per hour. It takes 10 seconds, on average, to
serve each car.
a Show that a queue would grow if there is only one service point.
b How many service points would handle this volume without a queue growing?
14 The following table describes the behaviour of a queue where there are two service points
and customers move to the next available service point.
a Complete the table showing the people in the queue and the length of the queue.
b How long does customer C wait to be served?
c Calculate the average inter-arrival time for customers.
d For customers B to I, calculate the average time spent waiting in the queue.
15 A Lepidoptera and Arachnid building is to be set up at the zoo. The oor plan is shown at
right. The building is to be designed so that the people can ow through in one direction
only. Each doorway will open
only one way and is designed to
ensure that there is no mixing of
the exhibits.
a Draw the doors leading from
one section to the next,
clearly indicating in which
direction they open. (The
entry and exit doors have
been completed for you.)
Time
(min)
Point 1
customer
Point 2
customer Arrivals
People in
queue
Length of
queue
0 A B C, D, E C, D, E
1 A C F, G
2 A D H
3 E D I, J
4 E F K
5 G H L
6 G H M, N
7 G I O
9D
9D
Arachnids
(Spiders)
Arachnids
(Scorpions)
Butterflies
(Rainforest)
Butterflies
(Temperate)
Moths
Tour
information
Glow-
worms
(Caves)
Exit
Entry
An analysis of the the ow of visitors through various exhibits at similar zoos in other cities
has provided the following table.
b If the doors can be represented by an arc (A) with a capacity of 12, convert the
information given in the table and plan into a network ow diagram using letters AJ.
c Analyse the inows, capacities and outows, and then describe what would happen to
the number of people in the rainforest butteries room.
d At what rate should people be admitted so that they can ow smoothly through the
building?
Section from Section to
Arrival rate
Number of people per minute
Entry Tour information 12
Tour information Rainforest butteries 13
Rainforest butteries Temperate butteries 12
Temperate butteries Moths 2
Temperate butteries Glow-worms 4
Temperate butteries Arachnids 2
Moths Glow-worms 4
Glow-worms Spiders 6
Spiders Scorpions 5
Scorpions Exit 12
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WorkSHEET 9.1: Perform forward and backward
scanning, determine earliest completion time,
critical paths and oat times (page 467)
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Spreadsheet 052: Investigate generating random
numbers (page 481)
WorkSHEET 9.2: Critical path analysis and
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9A Critical path analysis
9D
Queues: multiple service points
Chapter review
www.jacplus.com.au
10
In this
chapter
10A Compound events
independent events
10B Compound events
mutually exclusive events
10C Compound events Venn
diagrams
10D The binomial distribution
using Pascals triangle
10E Binomial probabilities
through tables
syllabus
reference
Elective topic
Introduction to models for data

Probability and
the binomial
distribution
492


Introduction

Daily, we hear and use words and phrases that
refer to probabilities 8 out of 10 people use

, thunderstorms are likely

A

probability

becomes more complex when
the outcome depends on the result of two or
more factors. For example, does a take-away res-
taurant sell more chicken kebabs with coffee or
beef kebabs with soft drink? In rolling two dice,
what are my chances of getting a total of 7? If I
roll a 2 on the rst die, what are my chances of
obtaining a total of 7 on rolling the second die?
On rolling a die 20 times, what chance do I have
that the outcome will show all sixes?
To nd answers to questions like these, we
need an understanding of the dependence (or
independence) of one event on another.
This chapter considers questions such as:
1. Does the outcome of a particular event affect the outcome of a second event?
2. Are there any common elements in two or more events?
3. Even though there may be many outcomes to an event, can we group the outcomes
to consider only two categories?

1

State the number of outcomes possible in each of the following trials:

a

rolling a die

b

tossing a coin

c

choosing a card from a deck of cards

d

rolling two dice.

2


a

b

+

c

1

d

( )

2

e

4

( )

3

f

10

( )

3

( )

2

3

Evaluate each of the following.

a

(0.2)

2

b

0.3

0.1

c

1

0.46

d

3

0.4

0.6

e

1

[0.3

+

0.03]

f

0.5

0.5

0.5

4

Convert each of the following to decimals (correct to 3 decimal places).

a b c
d

4

(0.6)

1

(0.4)

3

e

1

( )

4

f

35

( )

4

( )

3

5

State, in words, the complement of:

a

at least

b

less than

c

no more than.
1
2
---
1
6
---
1
2
---
1
6
---
1
6
---
1
6
---
1
6
---
1
2
---
1
2
---
1
8
---
3
16
------
75
100
---------
3
4
---
1
4
---
3
4
---
C h a p t e r 1 0 P r o b a b i l i t y a n d t h e b i n o m i a l d i s t r i b u t i o n

493

Compound events independent
events

There are cases when more than one activity is being considered at the same time, such
as tossing a coin

and

rolling a die together. It may be interesting to nd the probability
of (for example) tossing a Tail on a coin and rolling a 5 on a die. For these

compound
events

it is necessary to understand rst the concept of

independence

.

Independent events

When studying compound events we must establish if the events (or outcomes) are

independent

of each other or not. Two events,

A

and

B

, are independent if the occurrence
of event

A

has no effect on the probability of event

B

occurring. For example, when we
toss a coin and a die at the same time, the result on the coin does

not

depend on the
result on the die. In this case we say that the events are

independent

of each other.
However, consider tossing two dice. Suppose that event

A

is a 2 appearing on the
rst die and event

B

is the sum of the numbers on the two dice being less than 4. Then
event

B

is

dependent

on event

A

, because the number on the rst die is part of the sum
of numbers which make up event

B

.

The multiplication rule for independent events

Consider the rst case outlined above. To nd the
probability of obtaining a Tail on the coin

and

a 5
on the die, list all possible outcomes from a

tree

diagram

:

{

(1, T), (1, H), (2, T), (2, H),

(

3, T

)

, (3, H),
(4, T), (4, H), (

5, T

), (5, H), (6, T), (6, H)

}

In this experiment there is only one successful
outcome, (5, T); so, assuming all outcomes are equally
likely, the probability is:

=

.
It is tedious to draw tree diagrams (particularly if there are a large number of out-
comes) so we will look at a method to shorten the work involved. The problem can also
be solved by using the multiplication rule for independent events:

The multiplication rule states that if two (or more) events are

independent

of each
other, then the probability of

both

(or all) of them happening is the

product

(multiplication) of the individual probabilities.
P(

A

and

B

both occurring)

=

P(

A

)

P(

B

)

In our example, the probability of a Tail is and the probability of a 5 is , so the
probability of a Tail on the coin and a 5 on the die is

=

.
Note that this method works for 2, 3 or as many independent events as we wish.
It is worth emphasising the fact that the events must all be independent.
Die Coin
1
2
3
4
5
6
T
Outcomes
1T
H
T
H
T
H
T
H
T
H
T
H
1H
2T
2H
3T
3H
4T
4H
5T
5H
6T
6H
Number of favourable outcomes
Total number of possible outcomes
------------------------------------------------------------------------------------
1
12
------
1
2
---
1
6
---
1
2
---
1
6
---
1
12
------
494


Complementary events


were discussed in Chapter 12 of the Year 11 text. We shall
now consider a more mathematical approach to writing these concepts.
Let

A

be the specic event we are interested in. Then P(

A

) is the probability that

A

happens. What is the probability that

A

does not happen? Mathematically, this prob-
ability is denoted by P

(

A

)

.
An event either happens or does not happen, so P(

A

)

+

P(

A

)

=

1.
For example, if P(

A

)

=

0.4, then P(

A doesnt happen) = 0.6 and this is obtained from
1 P(A).
Mathematically this is written as P(A) = 1 P(A).
A and A are said to be complementary events (one is the complement of the other).
Two dice are tossed at once. Find the probability of a double 6 appearing.
THINK WRITE
Assume that each die toss is
independent of the other. State the
individual probabilities.
Die 1: P(6) =
Die 2: P(6) =
Apply the multiplication rule for
independent events.
P(double 6) =
=
1
1
6
---
1
6
---
2
1
6
---
1
6
---
1
36
------
1
WORKEDExample
A die is rolled.
a What is the probability of a 6 appearing uppermost?
b What is the probability of a number that is not a 6 appearing uppermost?
THINK WRITE
a List the elements in the event space and
nd the number of possible outcomes.
a S = {1, 2, 3, 4, 5, 6}
Number of possible outcomes = 6
List the successful outcomes and nd
how many there are.
If A is the event of a 6 appearing,
A = {6} and number of successful
outcomes = 1.
Find the probability of a 6 appearing
uppermost.
P(A) =
P(A) =
b Write the formula for an event not
occurring.
b P(A) = 1 P(A)
Find the probability of a number that is
not a 6 appearing.
P(A) = 1
=
1
2
3
number of successful outcomes
total number of outcomes
---------------------------------------------------------------------------
1
6
---
1
2
1
6
---
5
6
---
2
WORKEDExample
C h a p t e r 1 0 P r o b a b i l i t y a n d t h e b i n o m i a l d i s t r i b u t i o n 495
Are there any other combinations possible for the three cities? Not all possible combi-
nations of rainno rain for the three cities are listed;
for example P(rain in Sydney) P(no rain in Hong Kong) P(no rain in London).
The following section provides a method of discovering all combinations: the use of
tree diagrams.
On any day in September the
probability of rain in Sydney is 0.18,
while in Hong Kong it is 0.39 and
in London it is 0.41. Assuming the
independence of these events, nd:
a the probability that it is raining
in all three cities on the same
day in September
b the probability that it is not
raining in all three cities on the
same day in September
c the probability that it is raining
in Sydney and Hong Kong but
not in London on the same day
in September.
THINK WRITE
a State the individual probabilities. a P(rain in Sydney) = 0.18
P(rain in Hong Kong) = 0.39
P(rain in London) = 0.41
independent events.
P(rain in all 3 cities) = 0.18 0.39 0.41
= 0.0288
b The probabilities of no rain in
each city is 1 P(rain in that
city).
b P(no rain in Sydney) = 1 0.18
= 0.82
P(no rain in Hong Kong) = 1 0.39
= 0.61
P(no rain in London) = 1 0.41
= 0.59
independent events.
P(no rain in all 3 cities) = 0.82 0.61 0.59
= 0.2951
c In this case we need a mix of rain
and no-rain probabilities.
c P(rain in Sydney) = 0.18
P(rain in Hong Kong) = 0.39
P(no rain in London) = 0.59
independent events.
P(rain, rain, no rain) = 0.18 0.39 0.59
= 0.0414
1
2
1
2
1
2
3
WORKEDExample
Using tree diagrams for independent events
While the arithmetic approach can be used for computing probabilities for independent
events, a tree diagram gives us a visual method for calculating probabilities. Tree dia-
grams also help us to enumerate (list) all possible combinations of outcomes.
Two coins are tossed.
a Find all the possible outcomes, namely HeadHead, HeadTail . . . and so on.
b Find the probability of:
i no (0) Heads turning up iii exactly 1 Head turning up
iii at least one Head turning up iv exactly 2 Heads turning up.
THINK WRITE
a (a) It is reasonable to assume that the outcome
of the rst coin toss is independent of the
second toss.
a
(b) Display the possible outcomes for the rst
event, namely the rst coin toss.
Note: The two lines are called branches,
one for each possible event (H or T) in the
event space {H, T}.
(c) Label one branch H for Heads, the other
one T for Tails.
Show the probabilities for each branch.
In this case they are both 0.5.
Repeat for the second coin toss.
Notes
1. If a Head turns up on the 1st toss, either a Head
or a Tail turns up on the second toss.
2. Observe the pattern of H above T. Try to follow
this pattern.
Apply the multiplication rule for independent
events for each pathway. The rst pathway is
HH. There are 4 pathways in all. Note that the
sum of all 4 nal probabilities = 1 because when
two coins are tossed one of the 4 outcomes must
occur. The probability of a certainty occurring is 1.
b Use the tree diagram to answer the question.
Note: There is only one way of turning up
2 Heads. There is only one way of turning up 2 Tails.
There are two ways of turning up 1 Head and 1 Tail.
P(1 Head) = P(HT) + P(TH).
b iii P(TT) = 0.25
iii P(1 Head) = P(HT) + P(TH)
P(1 Head) = 0.5
iii P(at least 1 Head)
= P(HT) + P(TH) + P(HH)
= 0.25 + 0.25 + 0.25
= 0.75
iv P(HH) = 0.25
1
H 1st toss
T
2
H
0.5
0.5
T
1st toss
3
H
H
T
H
T
0.5
0.5
0.5
0.5
0.5
0.5
T
1st toss 2nd toss
4
HH 0.5 0.5 = 0.25
HT 0.5 0.5 = 0.25
TH 0.5 0.5 = 0.25
TT 0.5 0.5 = 0.25
H
H
T
H
T
0.5
0.5
0.5
0.5
0.5
0.5
T
1st toss 2nd toss
4
WORKEDExample
It is not necessary for each activity to have only two branches, or for the probabilities
to be equal. For example, a tree diagram representing a die toss would have 6 branches,
while a tree diagram representing months of the year would have 12 branches.
Marys father can drive her to school in his car (C) on Tuesdays, Wednesdays and Fridays
only. On the other two days Mary must ride her bicycle (B). In the month of August, the
weather is wet, overcast or sunny. The probability that it rains (R) is 0.1 and the
probability that it is overcast (O) is 0.35; the rest of the days are sunny (S). Using a tree
diagram, list the possible outcomes and probabilities, and nd the probability that Mary
gets wet when riding her bicycle.
Continued over page
THINK WRITE
(a) Assume that weather is independent
of mode of transport.
(b) Find P(sunny). Remember that the
weather is either sunny or it is not
sunny.
(c) Set up the weather branches.
P(sunny) = 1 P(not sunny)
= 1 [P(rain) + P(overcast)]
= 1 (0.1 + 0.35)
= 1 0.45
= 0.55
For each of the possible weather
branches, nd P(car) and P(bicycle). Set
up the second set of branches for these
probabilities.
P(car) =
= 0.6
P(bicycle) =
= 0.4
independent events and work out each
possible combination of weather and
mode of transport.
P(rain and bike) = 0.1 0.4
= 0.04
P(rain and car) = 0.1 0.6
= 0.06
P(overcast and bike) = 0.35 0.4
= 0.14
P(overcast and car) = 0.35 0.6
= 0.21
P(sunny and bike) = 0.55 0.4
= 0.22
P(sunny and car) = 0.55 0.6
= 0.33
1
R
O
S
0.1
0.55
0.35
2
R
B
C
B
C
B
C
0.1
0.4
0.6
0.4
0.6
0.4
0.6
0.55
0.35
S
O
3
5
---
2
5
---
3
R
B
C
B
C
B
C
0.1
0.4
0.6
0.4
0.6
0.4
0.6 0.55
0.35
S
O
RB 0.1 0.4 = 0.04
RC 0.1 0.6 = 0.06
OB 0.35 0.4 = 0.14
OC 0.35 0.6 = 0.21
SC 0.55 0.6 = 0.33
SB 0.55 0.4 = 0.22
5
WORKEDExample
It is also worth noting that the sum of the probabilities of the rst set of branches
(R, O, S) also equals 1 because the assumption is that the weather must be rainy,
sunny or overcast. This may also be useful in verifying your work. In the previous
example, 0.1 + 0.35 + 0.55 = 1.
Advantages and disadvantages of tree diagrams
The main advantage of a tree diagram is that it provides a graphical layout for
compound probability problems. If done correctly, it includes all possible branches.
However, for displaying three or more independent events (such as outcomes from
dice, coins and days of the week), there could be many (6 2 7 = 84) branches and
the tree diagram could become extremely large and hard to use. Thus, they are best
used for simpler problems with fewer branches.
THINK WRITE
The only outcome where Mary gets wet is
(rain, bicycle). Change this probability
into a fraction and interpret it.
To verify calculations, add up all 6 nal
probabilities to ensure that the total is 1.
This ensures that you have included all
possible outcomes.
P(rain, bicycle) = 0.1 0.4
= 0.04
P(rain, bicycle) =
= (about 1 day in 25)
0.04 + 0.06 + 0.14 + 0.21 + 0.22 + 0.33 = 1
4
5
4
100
---------
1
25
------
1. Compound events occur when more than one event is being considered at the
same time.
2. Two events, A and B, are independent if the occurrence of event A has no effect
on the probability of the occurrence of event B.
3. The formula for independent events states that if two (or more) events are
independent of each other, then the probability of both (or all) of them
happening is the product (multiplication) of the individual probabilities:
P(A and B both occurring) = P(A) P(B) where P(A) is the probability of event
A occurring, and P(B) is the probability of event B occurring.
4. P(A) is the probability of an event A happening, and P(A) is the probability of
the event A not happening. Then:
P(A) + P(A) = 1
P(A) = 1 P(A)
5. Tree diagrams can be used as a graphical method of displaying the outcomes
of, and computing the probabilities for, independent events.
remember
Compound events
independent events
1 A coin and a die are tossed at once. Find the probability of a Head appearing on the
coin and an even number appearing on the die. (Assume independence.)
2 A die is rolled.
a What is the probability of an odd number appearing uppermost?
b What is the probability of an even number (a number which is not odd) appearing
uppermost?
3 List all possible outcomes for tossing two dice. Find the probability that the total on
the two dice equals 9.
4 When we toss a pair of dice, the sum of the two numbers appearing uppermost can be
2, 3, 4, 5, 6, 7, 8, 9, 10, 11 or 12. Using the same list of possible outcomes as in
question 3, nd which sum is most likely. What is its probability?
5 In any week the probability of the Wallabies winning a rugby union match is 0.49,
while the probability of the Brisbane Lions winning an AFL match is 0.9, and the
probability of the Brisbane Broncos winning a rugby league match is 0.6. Find:
a the probability that all three teams will win in that week
b the probability that none of these teams win in that week
c the probability that the Wallabies and the Brisbane Lions win that week, but
the Brisbane Broncos do not.
6 Three coins are tossed. List all possible outcomes, namely HeadHeadHead,
HeadHeadTail . . . and so on. Find the probability that:
7
The probability of getting 10 Heads in a row is closest to:
8
The events that result from tossing a red die, tossing a blue die and tossing a green die are:
A never independent
B always independent
C sometimes independent
D independent if they are tossed at the same time only
E independent only if they are tossed one after the other.
9 Find the probability of getting triple-6 when tossing 3 dice.
10 The Stock Exchange index goes either up or down. The probability that the New York
Stock Exchange index goes up is 0.7; the Tokyo exchange index has a probability of
only 0.45 of rising; the Australian Exchange index has a probability of rising of 0.5.
Assume the three events are independent. (Is this a realistic assumption?) List the
possible outcomes and probabilities using a tree diagram and nd the probability that
all three exchanges go up.
a no (0) Heads turn up b exactly 1 Head turns up
c at least 1 Head turns up d exactly 2 Heads turn up.
A 0.1 B 0.01 C 0.001 D 0.000 98 E 0.000 000 001
10A
WORKED
Example
1
WORKED
Example
2
Digital docs:
SkillSHEET 10.1
Probability skills
Spreadsheet
069 Tree
diagrams
eBookplus eBookplus
WORKED
Example
3
WORKED
Example
4
multiple choice
multiple choice
WORKED
Example
5
11 Using the same data as in question 10, nd the probability that all three exchanges go
down.
12 An unfair coin has a probability of Heads of 0.55. Make a tree diagram representing
two tosses of this coin. What is the probability of getting two Tails?
13 Make a tree diagram for the tossing of three fair coins.
a How many different paths are there?
b Calculate the probability of each path and use your results to check the answer to
question 6.
14
If two events are independent, then the probability of neither occurring is:
A the product of their individual probabilities
B the sum of their individual probabilities
C 1 the product of their individual probabilities
D 1 the sum of their individual probabilities
E (1 the probability of one event)(1 the probability of the other event).
15 In the local supermarket, 60% of
the customers are women. It is
also observed that 20% of the
female customers buy bread, and
that 20% of the male customers
buy bread. Make a tree diagram
and nd:
a the probability that a cus-
tomer is a woman and buys
bread
b the probability that a cus-
tomer is a man and does not
buy bread.
16 Which of the following are likely to be independent events? (Note: There may be
more than one correct answer.)
a Potatoes sell for more than $1/kg in Queensland and potatoes sell for more than
$1/kg in New South Wales.
b The Liberals win the next election and the Brisbane Lions win the next grand
nal.
c It rains today and it rains tomorrow.
d It rains today and it rains 6 months from today.
e It rains today and the Stock Exchange goes up.
17 A restaurant serves a set two-
course meal and records the prob-
abilities that customers make
various choices, according to this
table.
Make a tree diagram of this
situation and nd the probability
that a customer has food from the
ocean for both courses.
multiple choice
First course Second course
P(prawns) = 0.4 P(beef) = 0.3
P(salad) = 0.25 P(sh) = 0.25
P(tomato soup) = 0.35 P(lamb) = 0.45
18 A medical researcher is testing a new drug as a cure for cancer. She has 40 patients
and uses the following testing scheme.
Using these data:
a for each of the three groups, nd the probability that it will include any one patient
b make a tree diagram with the result from part a forming the rst set of branches
c continue from b, with the second branch being the result (recover or dont recover)
d calculate the probabilities for all possible combinations
e discuss whether the drug is effective or not.
Compound events
In the previous section we looked at one kind of compound event, namely two events
that were independent of each other. In that case we were able to multiply probabilities.
In this section we look at different kinds of compound events events where there are
two (or more) outcomes from a single event space. We are interested in the probability
that any of these outcomes happen, but we must rst check to see if there is some
overlap between the outcomes.
Mutually exclusive events
Mutually exclusive events are events which cannot happen at the same time.
Patient groups Recover Dont recover
Do not receive the drug 4 10
Receive a small dose of the drug 6 10
Receive a large dose of the drug 8 2
For each of the following activities, determine which outcome pairs are mutually exclusive.
a A card is drawn from a pack of cards.
i The card is a king. ii The card is a queen.
b A card is drawn from a pack of cards.
i The card is a king. ii The card is a spade.
c A die is thrown.
i The upper face shows a 1. ii The upper face shows an even number.
d A die is thrown.
i The upper face shows a 1. ii The upper face shows an odd number.
e A shopper makes purchases at a
supermarket.
i The shopper buys eggs. ii The shopper buys milk.
f A car buyer purchases a car.
i The car is red. ii The car is green.
Continued over page
6
WORKEDExample
To decide whether events are mutually exclusive, look for an overlap between them. If
there appears to be no possible way that both events could happen together, then the
events are mutually exclusive.
Calculating probabilities for mutually exclusive events
This probability could have been found also by adding individual probabilities.
P(king or queen) = P(king) + P(queen)
= +
=
THINK WRITE
a A card cant be a king and queen at the
same time.
a Drawing a king and drawing a queen are
mutually exclusive events.
b It is possible for a card to be both a king
and a spade (the king of spades).
b Drawing a king and drawing a spade are
not mutually exclusive.
c Since 1 is an odd number, it cannot be an
even number.
c Tossing a 1 and an even number are
mutually exclusive events because 1 is not
an even number.
d 1 is an odd number. d Tossing a 1 and an odd number are not
mutually exclusive events because 1 is an
odd number.
e A shopper can buy both milk and eggs. e Buying milk and eggs are are not
mutually exclusive.
f A buyer cannot buy both a red and green
car (only 1 car is bought!)
f Buying a red car and buying a green car
are mutually exclusive events.
7
A card is drawn at random from a deck of 52 cards.
What is the probability that it is a king or queen?
THINK WRITE
Determine if the events are mutually
exclusive.
The card cannot be both a king and a queen at the
same time, so the events are mutually exclusive.
Find the individual probabilities. Since there are 4 kings, P(K) = and since there
are 4 queens, P(Q) = .
Calculate the probability that the card
is a king or a queen.
Since there is no overlap, there are
8 cards that are either a king or a queen.
P(king or queen) =
1
2
4
52
------
4
52
------
3
8
52
------
WORKEDExample
4
52
------
4
52
------
8
52
------
To nd the probability of mutually exclusive events occurring, add the individual
probabilities. In mathematical notation, we say that if A and B are mutually exclusive
events, then P(A or B) = P(A) + P(B). This is called the addition rule of probability. It
works for two or more mutually exclusive events.
Students entering Corvard University can enrol in one of the following degree programs:
Architecture, Arts, Engineering, Law, Medicine or Science. Only Arts and Law students
are exempted from doing compulsory First Year Mathematics. Furthermore, Architecture
and Engineering students must study Strength of Materials. The enrolments of students in
the six faculties for the previous year are shown in the table which follows.
Use the information provided to nd:
a the probability that a rst-year student chosen at random is doing First Year
Mathematics
b the probability that a rst-year student chosen at random is doing Strength of
Materials.
Faculty Architecture Arts Engineering Law Medicine Science
Students 105 420 345 620 155 420
THINK WRITE
Find the total number of students
enrolled.
Total number of students enrolled
= 105 + 420 + 345 + 620 + 155 + 420
= 2065
Since students enrol in one faculty
only, each faculty is mutually
exclusive, so for each faculty, nd
the probability that a student is
studying Mathematics.
P(Architecture) =
= 0.051
P(Engineering) =
= 0.167
P(Medicine) =
= 0.075
P(Science) =
= 0.203
a Apply the addition rule for First Year
Mathematics (FYM).
a P(FYM) = P(Architecture) +
P(Engineering) +
P(Medicine) + P(Science)
= 0.051 + 0.167 + 0.075 + 0.203
= 0.496
b Apply the addition rule for Strength
of Materials (SM).
b P(SM) = P(Architecture) + P(Engineering)
= 0.051 + 0.167
= 0.218
1
2
105
2065
------------
345
2065
------------
155
2065
------------
420
2065
------------
8
WORKEDExample
Compound events
1 For each of the following activities, determine which of the events are likely to be
mutually exclusive.
a A card is drawn at random from a pack of cards.
i The card is a spade. ii The card is a club.
b A card is drawn at random from a pack of cards.
i The card is a spade.
ii The card is a picture card (J, Q, K).
c A shopper buys items from the supermarket.
i He buys bacon.
ii He buys eggs.
d A shopper buys a stove.
i It is a gas stove. ii It is an electric stove.
e During the day, a woman watches the weather.
i It rains. ii It doesnt rain.
f During the day, a woman watches the weather.
i It rains. ii It is cold.
g A Member of Parliament belongs to a Party.
i She belongs to the Labor Party. ii She belongs to the Liberal Party.
2 A card is drawn at random from a deck of 52 playing cards. Find the probability that
it is:
a either a black jack or a red ace
b either an even-numbered card or a king
c either a heart or a black jack.
3 In a bag of coloured marbles there were 7 red marbles,
8 green marbles, 9 yellow marbles, 10 white marbles
and 11 purple marbles. If one marble is drawn from
the bag, nd:
a the probability that the marble is either red or yellow
b the probability that the marble is not white
c the probability that the marble is either white, green
or purple
d the probability that the marble is a colour which has
the letter w in it
e the probability that the marble is a colour which has
the letter e in it.
1. Mutually exclusive events are events which cannot happen at the same time.
2. Let P(A), P(B) be the probabilities of events A and B occurring, respectively. If
the events are mutually exclusive then:
P(A or B) = P(A) + P(B).
This is called the addition rule of probability.
remember
10B
WORKED
Example
6
WORKED
Example
7
4 Over the years, Liverpool and Manchester United football clubs have played
180 games. Liverpool has won 86, 16 were drawn and 2 were cancelled. Teams get
points for either a win or a draw. Find the probability that Manchester United gets
points when playing Liverpool in their next game.
5
When tossing a pair of dice, the pair of events which is mutually exclusive is:
A a double or a total of 10
B a double or a total greater than 4
C a double or a total of 2
D a double or a total of an even number
E none of these.
6 In a parliament there are 62 Liberal, 59 Labor, 14 Greens and 13 independent members.
If the Liberals propose a change to the tax laws, the Labor and independent members
will oppose it.
a What is the probability that an MP, chosen at random, opposes the bill?
b What are the chances of the bill passing?
7 When tossing a pair of dice nd the probability that:
a the total is either 7 or a number greater than 9
b the total is an even number or 7
c the total is a prime number.
8 A professional cricketer has recorded his
results in great detail over the years.
Specically he has recorded the method
by which he was dismissed.
a Find the probability that he was
dismissed either by leg-before-wicket
or by being run out.
b Find the probability that he was
dismissed by being bowled.
c Find the probability that he was
dismissed by any method.
Method of dismissal Number of times
Leg-before-wicket 17
Caught 13
Run out 6
Bowled by fast bowler 29
Bowled by spin bowler 11
Hit wicket 1
Not out 12
multiple choice
WORKED
Example
8
9 On a bookshelf there are several types
of book (shown in the table at right).
A book is chosen at random from the shelf.
Giving your answer to 3 decimal places,
nd the probability that it was:
a a poetry book
b a novel or a short-story book
c a non-ction book
d a ction book.
10 In a recent survey of 100 people it was found that 23 read just the morning newspaper,
37 read just the evening newspaper, and 9 read both papers. Find the probability that
a person chosen at random:
a reads the morning paper b reads the evening paper c reads no paper.
11 In the game of poker there are many
possible hands. Ranking from highest to
lowest, their probabilities are given in the
table at right.
a A poker machine pays if you get one
pair or better. What is the probability of
winning money? (Give your answer to
4 decimal places.)
b In a real game of poker, you have a full
house. What is the probability that
you win when playing against one other
opponent? Assume that all full houses
are equal.
(Give your answer to 4 decimal places.)
c About how many games would you
have to play to get a royal ush?
Type of book Number
Novel 12
Biography 5
History 8
Poetry 2
Computer manual 11
Short story 4
Mathematics text 12
Type of hand Probability
Royal ush 0.000 001 539
Straight ush 0.000 013 857
Four-of-a-kind 0.000 24
Full house 0.001 44
Flush 0.001 97
Straight 0.003 92
Three-of-a-kind 0.0211
Two pairs 0.0476
One pair 0.4236
eBookplus eBookplus
Digital doc:
WorkSHEET 10.1
Compound events Venn diagrams
In the previous section on mutually exclusive events, we had to ensure that the two (or
more) events making up the compound event had no overlap before we could proceed.
What do we do when there is an overlap?
Finding the overlap
Consider the following example.
Thus we can divide our students into 3 groups:
Group 1 those who speak English only (6)
Group 2 those who speak French only (3)
Group 3 those who speak both English and French (1).
In this example there is an overlap of 1 student. This overlap is called the intersection.
This situation can be displayed graphically using a Venn diagram.
Venn diagrams
A Venn diagram is made up of a rectangle that represents all possible outcomes with
the other activities represented by circles drawn within the rectangle.
Let us construct a Venn diagram from the information in Worked example 9.
In a room of 10 students, 7 can speak English, 4 can speak French and none speak neither.
How many students:
a speak both languages? b speak English only? c speak French only?
THINK WRITE
a Add up the frequencies of each of the
simple events that make up the
compound event.
a There are 7 English + 4 French students
= 11 students.
Establish that there are none who
belong to neither group.
Everyone speaks either English and/or
French.
Subtract the total number of students
from the total found in step 1.
11 10 = 1
Thus there must be 1 student who speaks
both.
b Find how many speak English and how
many speak both.
b 7 speak English and 1 speaks both.
Subtract the number who speak both
from the number who speak English.
7 1 = 6
There are 6 students who speak English
only.
c Find how many speak French and how
many speak both.
c 4 speak French and 1 speaks both.
Subtract the number who speak both
from the number who speak French.
4 1 = 3
There are 3 students who speak French
only.
1
2
3
1
2
1
2
9
WORKEDExample
Step 1 Construct a rectangle with 2 circles inside.
Since there is an overlap, show the two circles
overlapping. The rectangle represents all the
students in the room.
Step 2 Add labels to indicate that the rectangle
represents all the students in the room (the sample
space S), one circle represents students who speak
English (E) and the other circle represents
French (F) speaking students.
Step 3 Enter the number of students in all possible
regions to represent the students in those
categories. The 0 outside the circles indicates
that no students speak neither French nor English.
From the values in the four regions, it is a simple task to work out probabilities. Note
that the sum of all the numbers in the Venn diagram equals the total number of students.
P(English only) =
=
P(French only) =
P(both French and English) =
S
S
E F
S
E
6
0
1 3
F
6
10
------
3
5
---
3
10
------
1
10
------
In a group of 85 Year-11 students at Heartbeat High, it was found that 47 study
Mathematics A, 48 study Geography and 6 study neither. Construct a Venn diagram and
nd the probability that a student, chosen at random:
a studies both Mathematics A and Geography b studies Mathematics A only.
THINK WRITE
a State the number of students who are
in Year 11.
a There are 85 Year-11 students.
State the number of students who do
not study Mathematics A or
Geography.
There are 6 students who do not study
Mathematics A or Geography.
85 6 = 79
Hence, nd the number who study
There are 79 students who study
Find the total enrolments in
Mathematics A and Geography.
47 + 48 = 95 enrolments
Subtract the total in step 2 from the
total in step 4 to nd the intersection.
Intersection = 95 79
Intersection = 16
There are 16 students who study both
Mathematics A and Geography.
1
2
3
4
5
10
WORKEDExample
We can apply this Venn diagram technique to probabilities directly.
THINK WRITE
Work out the remaining regions by
subtracting this intersection from the
number studying Mathematics A and
Geography only.
Mathematics A only: 47 16 = 31
Geography only: 48 16 = 32
31 + 16 + 32 + 6 = 85
Construct the Venn diagram, then
calculate the required probabilities.
Verify that the sum of all parts is equal
to the total number of students.
Answer the question.
P(both) =
P(both) = 0.188 (about 19%)
b Answer the question. b P(Mathematics A only) =
P(Mathematics A only) = 0.365
6
S
M
31
6
16 32
G
7
8 16
85
------
31
85
------
Based on previous weather data, the probability that it is rainy and cold is 0.15.
The probability that it is neither rainy nor cold (that is, ne and warm) is 0.45. Also, it is
known that the probability it will rain is 0.35. Construct a Venn diagram and determine
the probability that it will be cold but will not rain.
Continued over page
THINK WRITE
Find the probability that neither event
occurs and put this number in the upper
right corner of the Venn diagram.
P(not rainy nor cold) = 0.45
Find the probability of the intersection. P(rainy and cold) = 0.15
1
S
R
0.45
C
2
S
R
0.45
0.15
C
11
WORKEDExample
The General Addition Rule for Probability
From the results of a probability problem such as Worked example 11, we can generalise
a rule for the relationship between the various components of compound events that are
not mutually exclusive. It is clear that there is an arithmetic (specically an addition)
relationship between the probabilities of the overlapping part and the non-overlapping
parts of a Venn diagram.
But rst, we need to develop some new symbolism
or notation.
Let A and B be two overlapping events, with
corresponding probabilities P(A) and P(B). Let the
intersection, as shown at right, be denoted as
P(both A and B).
This gives us the probability of the overlap.
Let the entire region where either A or B can happen,
as shown at right, be denoted by P(either A or B).
P(either A or B) P(A) + P(B), because we end up
counting P(both A and B) twice.
Thus we can correct the formula by subtracting P(both A and B) once, to give us the
General Addition Rule for Probability:
P(either A or B) = P(A) + P(B) - P(both A and B)
This can be shown, graphically, as:
THINK WRITE
Find P(rainy only) from the given
information. The total P(rainy) = 0.35,
P(rainy and cold) = 0.15.
P(rainy only) = P(rain) P(rainy and cold)
P(rainy only) = 0.35 0.15
P(rainy only) = 0.2
There is only one region left; work out
how much probability is left, given that
total = 1.
Total so far = 0.45 + 0.15 + 0.2
= 0.8
So, P(cold but not rainy) = 0.2
Complete the Venn diagram.
3
S
R
0.45
0.15 0.2
C
4
5
S
R
0.45
0.15 0.2 0.2
C
S
A B
S
A B
= +
A B A B A B A B

511

For mutually exclusive events, P(either

A

or

B

)

=

P(

A

)

+

P(

B

) because
P(both

A

and

B

)

=

0.
This formula can be used to solve compound probability problems without using
Venn diagrams. Provided we know 3 of the 4 quantities in the formula, we can nd the
fourth. Note that this formula does not take into account the region outside both circles.
This region can be calculated using the formula:

P(neither

A

nor

B

)

=

1

P(either

A

or

B

)

This can be shown, graphically, as:

=

A Venn diagram for this problem would be:
A B A B
A B
It was found that 56% of students study Mathematics, 37% study Physics and 26% study
both Mathematics and Physics. Find:
a the percentage of students who study either Mathematics or Physics
b the percentage who study neither Mathematics nor Physics.
THINK WRITE
a Identify the known
probabilities.
a 56% = 0.56
so P(Mathematics) = 0.56
37% = 0.37
so P(Physics) = 0.37
26% = 0.26
so P(both Mathematics and Physics) = 0.26
State the General
Addition Rule for
Probability and apply it
to nd the percentage of
students who study either
Mathematics or Physics.
P(either A or B) = P(A) + P(B) P(both A and B)
P(either Mathematics or Physics)
= 0.56 + 0.37 0.26
= 0.67
Therefore 67% study either Mathematics or Physics.
b Students study either
Mathematics or Physics or
they study neither. So the
sum of these probabilities
is 1.
b 1 0.67 = 0.33
Therefore, P(neither Mathematics nor Physics) = 0.33.
So 33% study neither Mathematics nor Physics.
1
2
12
WORKEDExample
0.33
0.30 0.11 0.26
S
M P
512


Compound events
Venn diagrams

1

In a group of 17 female athletes there are 9 who play netball and 12 who play soccer
and none who play neither. Find how many females:

2

In a survey of 200 television viewers, it was found that 135 watched the 7 oclock
news, 89 watched the 11 oclock news and 31 watched neither program. Construct a
Venn diagram and nd the probability that a viewer, chosen at random:

3

In a group of 76 students, 31 study Information Processing and Technology, 29 study
Technology Studies and 16 study neither subject. By constructing a Venn diagram,
show that the number of students who study both subjects is 0. Therefore, what can
you say about the events study IPT and study TS?

4

A survey of adults between the ages of 18 and 25 found that the probability that
someone smokes is 0.26, while the probability that someone consumes alcohol is
0.41. It also found that there is a probability of 0.51 that young adults neither drink
nor smoke. Construct a Venn diagram and nd the probability that they both drink and
smoke.

5

In researching two lotteries, it was found that the probability of winning Lottery A was
0.03, the probability of winning Lottery B was 0.07 and the probability of winning
both was 0.0009. Construct a Venn diagram and nd the probability of winning neither.

6

The managers of a large motel found that 17% of their customers stayed on a Friday
night, 14% of their customers stayed on a Saturday night and 71% of their customers
stayed on neither of these two nights. Construct a Venn diagram and show that the
probability that a customer stayed on both nights was:

7

The same motel managers also found that 16% of their customers ordered room ser-
vice for dinner, 26% ordered room service for breakfast and 5% ordered it for both
dinner and breakfast. Find:

a

the percentage who ordered either dinner or breakfast

b

the percentage who ordered neither dinner nor breakfast.

a

play both sports

b

play netball only

c

play soccer only.

a

watched both news programs

b

watched the 7 oclock news only.

A

2

B

0.2

C

0.02

D

0.002

E

0.0002
1. For any compound event, P(both A and B) is the overlap, or intersection,
between 2 events.
2. For any compound event, P(either A or B) is the union of the 2 events.
3. The addition rule for probability states that:
P(either A or B) = P(A) + P(B) P(both A and B)
4. For mutually exclusive events:
P(either A or B) = P(A) + P(B)
remember
10C
WORKED
Example
9
WORKED
Example
10
WORKED
Example
11
multiple choice
WORKED
Example
12

513

8

A professional gambler plays both blackjack and roulette. During a period of a month,
he recorded his results as follows. The probability that he ended the night losing
money was 0.32. The probability that he ended the night winning money if he just
played blackjack was 0.13, and if he just played roulette the probability of winning
money was 0.28.
By constructing a Venn diagram, or otherwise, nd the probability of a winning
night if he played both games. Would you say he was a better roulette player or black-
jack player?

9

It is possible to construct a Venn diagram for three
overlapping events as shown. The black area represents
the probability of all three, while the green area
represents the probability of events

A

and

B

, but not

C

,
and so on. Let

A

be the number of students studying
Mathematics B,

B

be the number of students who study
Mathematics C and

C

be the number of students who
study Chemistry. It is known that 6 students study all three subjects, 10 study both
Mathematics subjects, 9 study Mathematics C and Chemistry and 8 study
Mathematics B and Chemistry. Also, there are 26 students in the Mathematics B class,
20 students in the Mathematics C class and only 11 students in the Chemistry class.
How many students are there altogether?

10

In a group of sports people, 25 played soccer, 25 played netball and 25 played cricket.
Altogether there were 47 people in the group. If 8 played all three sports, 4 played
netball and soccer but not cricket, and 3 played soccer and cricket but not netball, how
many played just cricket?

1

On the tossing of two dice, what is the probability that the sum of the numbers will
be 7?

2

What is the probability of rolling a double on two rolls of a die?

3

A biased coin results in a head 60% of the time. On two tosses of the coin, what is
the chance that two Heads will result?

4

For the coin in question

3

, what is the chance that two Tails will result?

5

For the coin in question

3

, what is the chance that the two tosses will result in dif-
ferent faces?

6

A card is drawn from a deck of 52 playing cards. Find the probability that it is a
red queen.

7

What would be the probability that the card in question

6

is red or a queen?

8

In a class of 20 students, there are 5 students who wear glasses and 18 students
who are right-handed. How many right-handed students also wear glasses, if it is
known that there is only one left-hander who doesnt wear glasses?

9

In question

8

, how many right-handers dont wear glasses?

10

What is the probability that a person chosen from the class in question

8

is left-
handed and wears glasses?
A
C
B
1
514


The binomial distribution using
Pascals triangle

Probability distributions

In the birth of a child, the

outcome

can be either a male (M) or a female (F). This
means that P(M)

=

and P(F)

=

.
A graph of such a probability distribution where each
outcome has an equal chance of occurring produces a
rectangular shape.
The variables here (male/female) are able to be counted,
so we call this type of distribution a discrete

rectangular
distribution

or a discrete

uniform distribution.
The results of the birth of a child could be recorded
differently. We could look at the birth in terms of the
number of females born. For every birth, the outcome
would be 0 females or 1 female.
P(0 F) = P(M) =
P(1 F) = P(F) =
This also produces a discrete uniform distribution with the
same rectangular graphical shape shown top right.
We could extend this concept to consider the distribution
resulting from the birth of two children. As we have noted
before, the possibilities are as follows.
Male, male (MM) Female, male (FM)
Male, female (MF) Female, female (FF)
Each of these outcomes has a probability of . Graphing
this distribution we would observe the familiar rectangular
shape.
Looking at these outcomes from a different perspective,
we could record whether the two children were of the same
sex or of opposite sex.
P(same sex) = P(MM or FF) = =
P(opposite sex) = P(MF or FM) = =
A graphical representation of these recordings would also
produce a rectangular shape.
Another way of recording these outcomes would be to
look at the possible number of females in the births of two
children. This is obviously 0, 1 or 2. The probabilities of
each of these outcomes are not all the same.
P(0 F) = P(MM) =
P(1 F) = P(MF or FM) = =
P(2 F) = P(FF) =
1
2
---
1
2
---
P
r
o
b
a
b
i
l
i
t
y
M F
Event
1
2
Probability of male
or female birth
1
2
---
1
2
---
0 F
P
r
o
b
a
b
i
l
i
t
y
1 F
Event
1
2
Probability of
a female birth
1
4
---
P
r
o
b
a
b
i
l
i
t
y
MF MM FF FM
Event
1
4
Probability outcomes
for two births
2
4
---
1
2
---
2
4
---
1
2
---
P
r
o
b
a
b
i
l
i
t
y
Same
sex
Opposite
sex
Event
1
2
for two births
1
4
---
2
4
---
1
2
---
1
4
---
A graphical representation of these outcomes would not
produce a uniform, rectangular distribution. This type of
distribution is known as a binomial distribution.
The binomial distribution
A binomial distribution is the result of repeated trials
which have only two outcomes. In rolling a die, we may
be interested in rolling a six, or not rolling a six. In tossing
a coin we may be concerned with getting a Head, or not getting a Head. The two poss-
ible outcomes are labelled a success and a failure. The probability of a success is
represented by p while the probability of a failure is represented by q. Since these
two events are complementary
p + q = 1 that is, P(success) + P(failure) = 1.
The number of trials in the experiment is represented by n.
Let us extend our previous discussions on child births to consider up to four births. If
we are interested in the number of females born, we could represent the birth of a
female as a success and the birth of a male as a failure. We could have considered
the male birth to be a success and the female birth to be a failure. Whichever out-
come we choose to allocate as a success or a failure will not affect the results.
Let p = P(sucess) = P(F)
then q = P(failure) = P(M).
The outcomes resulting from the births of 1 to 4 children could be summarised in the
table which follows.
(continued)
n Outcome Successes Failures Probability
1 F 1 0 p =
M 0 1 q =
2 FF 2 0 pp = p
2
FM 1 1
= 2pq
MF 1 1
MM 0 2 qq = q
2
3 FFF 3 0 ppp = p
3
FFM 2 1
= 3p
2
q
1
FMF 2 1
MFF 2 1
FMM 1 2
= 3p
1
q
2
MFM 1 2
MMF 1 2
MMM 0 3 qqq = q
3
P
r
o
b
a
b
i
l
i
t
y
0 F 2 F 1 F
Event
1
2
1
4
for two births
pq
pq
}
ppq
pqp
qpp
}
pqq
qpq
qqp
}
Collating the results of the table we can notice the following patterns.
The power of p is the same as the number of successes in the trial.
The sum of the p and q powers in each term is the same as the number of trials.
The coefcient of each term can be obtained from Pascals triangle.
n Outcome Successes Failures Probability
4 FFFF 4 0 pppp = p
4
FFFM 3 1
= 4p
3
q
1
FFMF 3 1
FMFF 3 1
MFFF 3 1
FFMM 2 2
= 6p
2
q
2
FMFM 2 2
FMMF 2 2
MFFM 2 2
MFMF 2 2
MMFF 2 2
FMMM 1 3
= 4p
1
q
3
MFMM 1 3
MMFM 1 3
MMMF 1 3
MMMM 0 4 qqqq = q
4
Number of
trials n
Probability
4 successes 3 successes 2 successes 1 success 0 successes
1 p
1
q
1
2 p
2
2p
1
q
1
q
2
3 p
3
3p
2
q
1
3p
1
q
2
q
3
4 p
4
4p
3
q
1
6p
2
q
2
4p
1
q
3
q
4
pppq
ppqp
pqpp
qppp
}
ppqq
pqpq
pqqp
qppq
qpqp
qqpp
}
pqqq
qpqq
qqpq
qqqp
}
1
1 1
1 2 1
1 3 3 1
1 4 6 4 1
1 5 10 10 5 1
1 6 15 20 15 6 1
1 7 21 35 35 21 7 1
Pascals triangle
The arrangement of numbers in Pascals triangle begins by writing 1s along the out-
side of the triangle. On the inside, numbers are obtained by adding adjacent numbers in
the same row and writing this number below and between this pair of numbers. For
example:
1 3
4
For reasons that will become clear later, the elements in Pascals triangle are labelled
as follows:
The rst row 1 is called row 0
the next row 1 1 is called row 1
and so on.
Row 5 is 1 5 10 10 5 1
Note that, in the table,
when n = 1, the coefcients are 1 1
when n = 2, the coefcients are 1 2 1
when n = 3, the coefcients are 1 3 3 1 and so on.
So, when we are looking for the term which represents the probability of 2 successes
in, say, 5 trials, we need the term with p to the power of 2. Since the powers of p and q
add to give the value of n (5 in this case), the power of q is 3; that is, the term p
2
q
3
(2 successes and 3 failures).
To get the coefcient of this term we go to row 5 in Pascals triangle.
1 5 10 10 5 1
The rst number represents the number of outcomes with 5 successes. The second
number represents the number of outcomes with 4 successes, and so on.
So the coefcient of the term representing 2 successes is 10. This means that the
probability of 2 successes in 5 trials is represented by the value of 10p
2
q
3
when values
are substituted for p and q.
Remember that, in these experiments, we are concerned with only two possible out-
comes. We could use this technique if, for example, a die was rolled repeatedly and the
number of 6s resulting was observed. We would not use this technique if we wanted to
observe the number of 1s, 2s, 3s, 4s, 5s or 6s resulting.
Calculate the probability of tossing 3 Heads in 4 tosses of a coin.
THINK WRITE
This is a binomial experiment as we
have only two outcomes (Head or Tail).
Let a success occur when a Head
results, and a failure when a Tail
results. Assign values to these two
outcomes.
Let p = P(success) q = P(failure)
= P(H) = P(T)
= =
= 0.5 = 0.5
Specify the number of trials (n). n = 4 trials
Locate the coefcient of the term from
row 4 of Pascals triangle.
1 4 6 4 1 is row 4 of Pascals triangle.
Coefcient required = 4 (3 successes)
Write the term with p to the power 3
and q to the power 1: (3 + 1 = n = 4).
P(3 Heads in 4 tosses)
= 4p
3
q
1
Substitute values for p and q. = 4 (0.5)
3
0.5
= 0.25
Calculate the probability. The probability of 3 Heads in 4 tosses is 0.25.
1
2
1
2
---
1
2
---
3
4
5
6
7
13
WORKEDExample
A coin is biased so that the probability of it showing a Tail is 0.4. If the coin is tossed
7 times, what is the chance that 4 Heads will appear?
THINK WRITE
Since we are wanting Heads to appear,
let a success be represented by the
appearance of a Head.
Allocate values to the probability of a
success p and the probability of a
failure q. (Remember that p + q = 1.)
Let p = P(success)
= P(H)
= 0.6
q = P(failure)
= P(T)
= 0.4
State the number of trials. n = 7
Locate the seventh row of Pascals
triangle. Find the coefcient
representing 4 successes.
1 7 21 35 35 21 7 1
is row 7 of Pascals triangle.
Coefcient required = 35 (4 successes)
The term representing 4 sucesses and
3 failures in 7 trials is p
4
q
3
.
Write the probability for 4 successes in
7 trials.
P(4 successes in 7 trials)
= 35p
4
q
3
Substitute values for p and q. = 35 (0.6)
4
(0.4)
3
Calculate the probability. = 0.29
Write the answer. So, the probability of obtaining 4 Heads in
7 tosses of the coin is 0.29.
1
2
3
4
5
6
7
8
9
14
WORKEDExample
Graphics calculators can greatly simplify calculating binomial probabilities. Here are
the steps required for solutions to Worked examples 13, 14 and 15.
1. To calculate binomial probabilities, press:
2: STAT
(DIST)
(BINM)
(Bpd).
2. For Worked example 13, enter the data
as shown.
In the previous worked example, what would be the chance that no more than 4 Heads
would appear in the 7 tosses of the coin?
THINK WRITE
Dene a success and a failure,
allocating values to their
probabilities.
Let p = P(success) q = P(failure)
= P(H) = P(T)
= 0.6 = 0.4
State the number of trials. n = 7
No more than 4 Heads means:
0 Heads, 1 Head, 2 Heads, 3 Heads
or 4 Heads. We must nd each of
these probabilities and add them.
P( 4 H)
= P(0 H) + P(1 H) + P(2 H) + P(3 H) + P(4 H)
State the individual terms, locating
their coefcients in Pascals triangle.
= q
7
+ 7pq
6
+ 21p
2
q
5
+ 35p
3
q
4
+ 35p
4
q
3
Substitute values for p and q. = (0.4)
7
+ 7 0.6 (0.4)
6
+ 21 (0.6)
2
(0.4)
5
+ 35 (0.6)
3
(0.4)
4
+ 35 (0.6)
4
(0.4)
3
Calculate the answer. = 0.002 + 0.017 + 0.077 + 0.194 + 0.29
= 0.58
Write the answer. The probability that no more than 4 Heads would
appear in 7 tosses of the coin is 0.58.
1
2
3
4
5
6
7
15
WORKEDExample
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating binomial probabilities
MENU
F5
F5
F1
3. Press (CALC) to see the answer.
4. Repeat the steps above for Worked
example 14.
6. For Worked example 15, press:
2: STAT
(DIST)
(BINM)
(Bcd).
Enter the data as shown.
HOME c
1: Calculator 1
MENU b
5: Probability 5
5: Distributions . . . 5
D: Binomial Pdf D.
2. For Worked example 13, enter the data
as shown.
Note: Press Tab e to move between
elds.
F1
F1
MENU
F5
F5
F2
F1
3. Select OK, then press ENTER .
4. Repeat the steps above for Worked
example 14.
6. For Worked example 15, press:
HOME c
1: Calculator 1
MENU b
5: Probability 5
E: Binomial Cdf E.
7. Enter the data as shown.
The binomial distribution
using Pascals triangle
Note: Use the table on page 526 for these questions. Alternatively, you may wish to use
a graphics calculator.
1 Complete the entries in Pascals triangle in the row following each of these rows.
a 1 6 15 20 15 6 1 b 1 8 28 56 70 56 28 8 1
2 Deduce the entries in Pascals triangle in the row before each of these rows.
a 1 6 15 20 15 6 1 b 1 8 28 56 70 56 28 8 1
3 Use Pascals triangle to determine the number of outcomes in the following experiments.
a 3 trials, 0 successes b 4 trials, 1 success
c 8 trials, 4 successes d 110 trials, 110 successes
e 110 trials, 109 successes
4 Use the power button on your calculator to evaluate the following.
a (0.4)
4
b (0.7)
6
c (0.5)
3
d (0.3)
3
(0.7)
2
e (0.7)
4
(0.3)
1
f (0.5)
2
(0.5)
4
5 Calculate the value of each of the following.
a 15(0.7)
2
(0.3)
5
b 5(0.7)
1
(0.3)
4
c 6(0.4)
2
(0.6)
2
The values in Pascals triangle to row 15 are shown in the table on page 526. You
should consult the table for the necessary coefcient values for questions 6 to 13.
6 A fair coin is tossed 6 times. What is the probability that:
a a Tail appears exactly 4 times? b a Head appears exactly 3 times?
7 A coin is biased with the probability of tossing a Head being 0.6. What is the prob-
ability that when the coin is tossed 8 times a Head appears:
a exactly 4 times?
b less than 7 times? (Hint: P(less than 7 times) = 1 P(7 or 8 times).)
8 A die is rolled 5 times. What is the probability that a 6
will appear:
a exactly 1 time? b less than 2 times?
9 On a roulette wheel we may assume that all
numbers are either red or black. The chance of
the ball coming to rest on a red number is close
to 50%. If the wheel is spun 7 times, what is the
probability that:
a the rst number is a red number?
b exactly 3 of the numbers are black?
1. A discrete uniform distribution is produced by an experiment where each
outcome has an equal chance of occurring.
2. The graph of such a distribution is rectangular in shape.
3. A binomial distribution results from an experiment which consists of only two
outcomes, called a success and a failure.
4. Pascals triangle can be used in calculating the probability of obtaining
particular successes in repeated trials.
remember
10D
WORKED
Example
13
WORKED
Example
14, 15
10 Lopac is attempting to get his drivers licence. He has to pass a written true-or-false
test. There are 10 questions in the test. If he guesses the answer to all the questions,
what is the probability that he gets:
a a particular question correct? b all 10 questions correct?
11 Kelly is running out of time on her aptitude test and she decides to guess the last
6 multiple-choice questions. For each question she must circle A, B, C or D. What is
the probability that she guesses:
a any particular question correctly?
b no correct answers?
c exactly 4 correct answers?
12 Gabrielle and Mary-Jo have played many tennis matches against each other. The
statistics show that in any particular game the probability that Gabrielle wins is 0.6.
Note that a tennis match consists of many games! What is the probability that:
a out of 8 games Gabrielle wins exactly 6?
b out of 8 games Mary-Jo wins exactly 6?
13 Sean is the local golf professional. Every hole he plays he expects to get par or better
with a probability of 0.8. If he plays 9 holes, what is the probability that he will score
par or better on every hole?
Rectangular and binomial
distributions
Task 1
1 Set your calculator to generate random integers in the range 1 to 5 inclusive.
2 Copy and complete the table below to record the result of generating 100
random integers. Calculate the probability of the occurrence of each number by
dividing the frequency of each number by 100 (the total number of trials),
expressing your answer as a decimal to 2 decimal places.
(continued)
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SkillSHEET 10.2
Listing possibilities
Spreadsheets
052 Generating random
integers
043 Pascals triangle
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Number Tally Frequency Probability
1
2
3
4
5
Total 100 1
3 Draw a histogram of your distribution with the number value on the x-axis and
probability on the y-axis.
4 Describe the shape of your distribution.
Task 2
1 Again set your calculator to generate random integers in the range 1 to 5
inclusive.
2 Consider performing 20 trials,
each trial consisting of
generating a set of ve random
integers. For each trial, record
the number of 2s which appear.
Copy and complete the table
at right.
3 Count the number of trials
where no 2s result, one 2
results, two 2s result and so on.
Copy and complete the table
below. Calculate the probability
for each category to 2 decimal places.
4 Draw a histogram of your distribution with the number of resulting 2s on the
x-axis and probability on the y-axis.
5 Comment on the shape of your distribution.
Task 3
1 Repeat Task 2, counting the occurrence of a number other than 2 (1, 3, 4 or 5)
in the random integer generation.
2 Compare your graph with the one obtained in Task 2.
Conclusion
What do you conclude from this experiment? Write about a page comparing the
results of your three tasks. Support any comments by referring to data collected,
gures calculated and graphs drawn.
Trial number Number of 2s
1
2
3
4
20
Number of 2s resulting Frequency Probability
0
1
2
3
4
5
Total 100 1
Pascals triangle
There are many features of Pascals triangle which at rst are not obvious. Let us
investigate.
1 Complete Pascals triangle to row 10.
2 Comment on the symmetry of the triangle.
3 What is the relationship between the number of entries in a row and the row
number?
4 What do you notice about the number of entries in each odd-numbered row?
What about the number in each even-numbered row?
5 Compare middle numbers with odd and even numbers of trials.
6 Investigate to nd a relationship between the sum of the numbers in a row and
that row number.
7 Look at the entries in each row. Consider row 1 to be a two-digit number, row 2
to be a three-digit number, and so on.
Note that in row 1, 11
1
= 11
in row 2, 11
2
= 121
Does this pattern continue?
8 The six numbers forming a circle around another number are said to form a ring.
If we multiply these six numbers together, this product has a special property.
What is it?
9 Fibonaccis sequence is the set of numbers 1, 1, 2, 3, 5, 8, 13, 21, Each new
number is found by adding the two previous numbers. Where could you nd the
Fibonacci sequence in Pascals triangle?
10 The square numbers 4, 9, 16, 25, can be found by adding two adjacent
numbers. Where does this pattern occur?
11 The triangular numbers 1, 3, 6, 10, can be located easily. Where do they occur?
12 The rst diagonal consists of the numbers 1, 2, 3, 4, Locate the position of the
rst four numbers of this diagonal. Where does the sum of the rst four numbers of
this diagonal lie? Does this pattern continue? Does this pattern also follow for the
sum of the numbers in the second diagonal (1, 3, 6, 10, )?
13 Find the sum of all the elements in Pascals triangle down to and including the
rst six rows. Copy and complete the table below.
What pattern would enable you to determine the sum down to any row without
actually adding all the elements?
14 Many visual patterns are also apparent in Pascals triangle if multiples of
numbers are highlighted. To obtain the full effect of these patterns it would be
necessary to extend your triangle beyond the tenth row.
a Try highlighting all the multiples of 2.
b On a new triangle, highlight the multiples of 3.
15 There are many more patterns which lie hidden in Pascals triangle. Investigate
to discover different ones for yourself. Templates can be found by logging into
www.jacplus.com.au and locating the weblinks for this chapter.
16 Create a poster or write a summary of the properties of Pascals triangle. This
could be prepared as an oral presentation to your class.
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Row 0 1 2 3 4 5 6
Sum 1 3 7
Pascals triangle binomial coefcients
Trial
n
Number of successes
15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
1 1 1
2 1 2 1
3 1 3 3 1
4 1 4 6 4 1
5 1 5 10 10 5 1
6 1 6 15 20 15 6 1
7 1 7 21 35 35 21 7 1
8 1 8 28 56 70 56 28 8 1
9 1 9 36 84 126 126 84 36 9 1
10 1 10 45 120 210 252 210 120 45 10 1
11 1 11 55 165 330 462 462 330 165 55 11 1
12 1 12 66 220 495 792 924 792 495 220 66 12 1
13 1 13 78 286 715 1287 1716 1716 1287 715 286 78 13 1
14 1 14 91 364 1001 2002 3003 3432 3003 2002 1001 364 91 14 1
15 1 15 105 455 1365 3003 5005 6435 6435 5005 3003 1365 455 105 15 1
Blaise Pascal was a French mathematician
and physicist who studied combinatorics
and developed the theory of probability.
He was born in the town of Clermont in
France. His father was an important
taxation ofcer. His mother died when he
was only 4. Pascal was a sickly child and so
was not sent to school initially but was
educated at home by his father. Because he
was not healthy his father would not let him
study mathematics. It took about 5 years
before Blaise could convince his father to
let him try.
During his life . . .
The Taj Mahal is
started.
Rembrandt does
most of his
paintings.
Oliver
Cromwell
governs England.
History
of mathematics
BLAI SE PASCAL ( 1 6 2 3 6 2 )
Binomial probabilities
through tables
The use of Pascals triangle to help in calculating binomial probabilities makes the task
easier. However, this in turn becomes difcult when questions such as the following are
posed: What is the probability of passing (getting 50% or better) through pure guess-
work on a true-or-false test of 20 questions?
To solve this, one needs to add the probability of scoring exactly to the
probability of scoring exactly and so on. Tables have been constructed that make the
task much simpler. These tables are found in the binomial distribution tables on
pages 5323. The values in the table give the probability for x or less successes in n
trials with the probability of success, p. Their use is demonstrated in the following
example. Note that the probability values are given to 4 decimal places.
When Blaise was 16, his father was in
trouble with the courts because he would not
set any more taxes. He had to leave Paris, and
the family moved to Rouen.
Blaise Pascal discovered and proved a
major theorem of geometry when he was only
16 years old. This theorem was about the
intersections of points on a conic plane.
When he was 18 he became very ill. He
eventually recovered, after being temporarily
paralysed and close to death. After this scare
he became very religious and started to study
philosophy and religion. His research into
mathematics and science often conicted
with his religious beliefs.
At age 19, Pascal invented a calculating
machine that could do simple addition and
subtraction. He sold many of these machines
and they were so well made that some still
exist today.
He demonstrated that air pressure
decreases with height by taking accurate
measurements at various levels on the side of
the Puy de Dme mountain. He persuaded his
brother to climb the mountain and take
measurements using a heavy barometer.
Like many mathematicians, Blaise Pascal
had arguments with other mathematicians,
including Ren Descartes, who came to visit
him. Descartes did not believe that Pascal
was capable of such difcult mathematics and
claimed that Pascal had stolen some of his
ideas from Descartes himself. Blaise Pascal
developed the pattern of numbers now known
as Pascals triangle that is used in
probability, permutations and combinations.
When Blaise Pascals father died, his sister
went into a monastery, and he was left to live
free of family and spiritual conicts. His
health improved and he took up an active
social life including gambling and driving a
fast, horse-drawn carriage!
In late 1654 he was involved in an
accident. His horses went over the edge of a
bridge and were killed, but he survived.
Pascal was shaken up by this and again saw
the event as a message from God. In 1655 he
moved in with his married sister. Later that
year, Pascal became ill and eventually died
from the effects of a brain tumor and stomach
ulcer in 1662.
The computer language Pascal is named
after him.
Questions
1. How old was Pascal when he proved
his theorem on conics?
2. What did he develop at age 19 that
earned him a lot of money?
3. Upon which mountain was his work on
air pressure done, and who did the real
work?
4. What is Pascals triangle used for?
5. What did he die from?
10
20
------
11
20
------
A fair coin is tossed 10 times. What is the probability that:
a 4 Heads or fewer appear?
b more than 4 Heads appear?
c at least 4 Heads appear?
THINK WRITE
a State values for n and p. a n = 10
p = P(success)
p = P(H)
p = 0.5
Use the binomial cumulative distribution
table for n = 10 and p = 0.5.
Using the binomial cumulative
distribution table for n = 10 and p = 0.5,
P( 4 H) = 0.3770.
Write the answer. The probability of 4 Heads or fewer is
0.377.
b Use tables for n = 10 and p = 0.5. b P(> 4 H) = 1 P( 4 H)
P(> 4 H) = 1 0.3770
P(> 4 H) = 0.6230
Use the complementary event.
Write the answer. The probability of more than 4 Heads
is 0.623.
c Use the same table and consider the
complementary event.
c P( 4 H) = 1 P( 3 H)
P( 4 H) = 1 0.1719
P( 4 H) = 0.8281
Write the answer. The probability of at least 4 Heads is
0.8281.
1
2
3
1
2
3
1
2
16
WORKEDExample
George attempts to guess the answers to a multiple-choice test of 20 questions. Each
question has 4 options: A, B, C and D. What is the probability that, through guesswork,
George scores 10 or better?
THINK WRITE
Locate the binomial cumulative
distribution tables on pages 5323.
State the values for n and p. n = 20
p = P(success)
p = P(correct answer)
p =
p = 0.25
1
2
1
4
---
17
WORKEDExample
Note: A graphics calculator can also be used to answer these questions.
Binomial probabilities
through tables
1 Use the binomial cumulative distribution tables on pages 5323 to calculate the prob-
ability of these events. (Here n stands for the number of trials, p the probability of
success and x the number of successes.) A graphics calculator could also be used.
a P(x 6) p = 0.8 n = 15
b P(x 5) p = 0.3 n = 10
c P(x 20) p = 0.8 n = 25
d P(x 10) p = 0.4 n = 15
2 Use the binomial cumulative distribution tables on pages 5323 or a graphics calcu-
lator to calculate the probability of these events.
a P(x 4) p = 0.5 n = 10
b P(x 10) p = 0.8 n = 15
c P(x 15) p = 0.9 n = 20
d P(x 17) p = 0.8 n = 25
3 Use the binomial cumulative distribution tables on pages 5323 or a graphics calcu-
lator to calculate the probability of these events.
a P(x 8) p = 0.5 n = 15
b P(x 8) p = 0.5 n = 15
c P(x > 10) p = 0.4 n = 25
d P(x < 8) p = 0.9 n = 25
4 A fair coin is tossed 20 times. What is the probability that it will show
Heads at least 8 times?
5 A die is rolled 25 times. What is the probability that:
a an even number will show at least 12 times?
b a 6 will turn up at most 5 times?
THINK WRITE
We need P( 10 correct) so use the
complementary event. Look up the
binomial cumulative distribution table
for n = 20, p = 0.25 and x = 9.
P( 10 correct) = 1 P( 9 correct)
P( 10 correct) = 1 0.9861
P( 10 correct) = 0.0139
Write the answer. So, the probability that George scores 10 or
better through guessing is 0.0139.
3
4
Binomial distribution tables are useful in determining binomial probabilities in
repeated trials. A graphics calculator is also useful.
remember
10E
WORKED
Example
16, 17
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Digital docs:
SkillSHEET 10.3
Multiple probabilities
WorkSHEET 10.2
6 What is the probability of achieving at least 50% on the following tests due to pure
guesswork only?
a A true-or-false test of 10 questions.
b A true-or-false test of 20 questions.
c A true-or-false test of 25 questions.
d A multiple-choice test of 10 questions each with options A, B, C and D.
e A multiple-choice test of 20 questions each with options A, B, C and D.
f A multiple-choice test of 25 questions each with options A, B, C and D.
7 Though Fred is unaware of it, he has a (ctitious) disease called pyronia. The disease
is contagious and people who have been in contact with him have a 40% chance of
contracting it. If 10 people come into contact with Fred, what is the probability that:
a exactly 1 person will catch the disease?
b at least 2 people will catch the disease?
c at least 1 person will catch the disease?
8 A scientist estimates that in a certain lake there are 1200 striped trout and of these 240
are tagged.
a If a striped trout is caught, what is the probability that it is tagged?
b A sample of 10 striped trout are caught. What is the probability that:
i exactly 3 of these are tagged?
ii at least 3 sh are tagged?
iii none of the sh are tagged?
c What conclusion could be made by the scientist if 8 of the 10 sh were tagged?
9 A political poll revealed that 60% of the population favoured the Green Party candi-
date while the remainder said that they would vote for the Yellow Party candidate.
What is the probability that in a group of 20 people there would be a majority in
favour of the Yellow Party?
10 Paul nds that he knows none of the answers in his Chinese test and has to guess
them. Each of the 10 questions is multiple-choice with 3 possible answers. What is
the probability that he guesses:
a a particular answer correctly?
b all answers correctly?
c he passes; that is, scores at least 5 out of 10?
The birthday problem
In a large group of people, you might expect to nd two with the same birthday. In a
smaller group, you might think that the probability of that occurring is almost negligible.
Statistically, it has been calculated that, in a group of only about 60 people, the
chance of nding two people with the same birthday is almost 100%. The term with
the same birthday in this case means celebrating a birthday on the same date and
month not taking into account the year of birth.
1 Before undertaking this investigation, record the birthday of each student in your
class. Did you nd an incidence of two people with the same birthday? If you
have quite small numbers, you may need to extend the group to your whole year
level. Conduct a survey on a group of about 60 people and test the statistic.
2 There are many web sites dealing with this problem, also providing a detailed
solution. Access one of the sites and follow the solution and logic provided.
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531

1

In a family of 3 children,
what is the probability that
they will all be the same
sex?

2

Write row 4 of Pascals
triangle.

3

A die is rolled 4 times and
the number of times a 6
results is noted. What would
be the values for

p

,

q

and

n

in this experiment?

4

For the experiment in question

3

, write the term which would represent the prob-
ability of obtaining three 6s.

5

Calculate the probability of obtaining three 6s in four rolls of a die.

6

A coin is biased so that it results in a Tail 70% of the time. What is the probability
of obtaining 4 Tails in 5 tosses of the coin?

7

Use the binomial cumulative distribution tables on pages 5323 to determine the
probability of obtaining at most 10 Heads in 15 tosses of an unbiased coin.

8

What would be the probability of obtaining more than 10 Heads in the experiment
in question

7

?

9

A multiple-choice test consists of 20 questions each with a choice A, B, C or D.
What would be the chance of passing the test by purely guessing the answers?

10

If the test in question

9

had ve choices A, B, C, D or E, what chance would there
be of passing the test by merely guessing?

3

You might like to use the ideas in this solution to pose alternative problems that
you could test in your classroom environment. Here is a suggestion to get you
started.
Consider a group of two students. Calculate the theoretical chance of them both
having a birthday on the same day of the week this year. Add a third, fourth . . .
person to the group. What is the theoretical minimum number of students
required to be assured of an almost 100% chance that two of the students would
share a birthday on the same day of the week this year? Of course, for a group of
8 students, the probability would be 100%, but it may be very close to 100% for
a much smaller group. Test your theory by randomly selecting two students from
your class. Add a third, fourth . . . and test your theoretical calculations. Repeat the
experiment with another group of students. What are your conclusions?
2
532


The binomial cumulative distribution
tables

The values in the tables give the probability for

x

or fewer successes in

n

trials with the
probability of success,

p

.

n

=

5

p
x

.01 .05 .10 .20 .25 .30 .40 .50 .60 .70 .75 .80 .90 .95 .99
0
1
2
3
4
.9510
.9990
1.0000
.7738
.9774
.9988
1.0000
.5905
.9185
.9914
.9995
1.0000
.3277
.7373
.9421
.9933
.9997
.2373
.6328
.8965
.9844
.9990
.1681
.5282
.8369
.9692
.9976
.0778
.3370
.6826
.9130
.9898
.0313
.1875
.5000
.8125
.9688
.0102
.0870
.3174
.6630
.9222
.0024
.0308
.1631
.4718
.8319
.0010
.0156
.1035
.3672
.7627
.0003
.0067
.0579
.2627
.6723
.0000
.0005
.0086
.0815
.4095
.0000
.0012
.0226
.2262
.0000
.0010
.0490

n

=

10

p
x

.01 .05 .10 .20 .25 .30 .40 .50 .60 .70 .75 .80 .90 .95 .99
0
1
2
3
4
.9044
.9957
.9999
1.0000
.5987
.9139
.9885
.9990
.9999
.3487
.7361
.9298
.9872
.9984
.1074
.3758
.6778
.8791
.9672
.0563
.2440
.5256
.7759
.9219
.0282
.1493
.3828
.6496
.8497
.0060
.0464
.1673
.3823
.6331
.0010
.0107
.0547
.1719
.3770
.0001
.0017
.0123
.0548
.1662
.0000
.0001
.0016
.0106
.0473
.0000
.0004
.0035
.0197
.0001
.0009
.0064
.0000
.0000
.0001 .0000
5
6
7
8
9
1.0000 .9999
1.0000
.9936
.9991
.9999
.9803
.9965
.9996
1.0000
.9527
.9894
.9984
.9999
1.0000
.8338
.9452
.9877
.9983
.9999
.6230
.8281
.9453
.9893
.9990
.3669
.6177
.8327
.9536
.9940
.1503
.3504
.6172
.8507
.9718
.0781
.2241
.4744
.7560
.9437
.0328
.1209
.3222
.6242
.8926
.0016
.0128
.0702
.2639
.6513
.0001
.0010
.0115
.0861
.4013
.0000
.0001
.0043
.0956

n

=

15

p
x

.01 .05 .10 .20 .25 .30 .40 .50 .60 .70 .75 .80 .90 .95 .99
0
1
2
3
4
.8601
.9904
.9996
1.0000
.4633
.8290
.9638
.9945
.9994
.2059
.5490
.8159
.9444
.9873
.0352
.1671
.3980
.6482
.8358
.0134
.0802
.2361
.4613
.6865
.0047
.0353
.1268
.2969
.5155
.0005
.0052
.0271
.0905
.2173
.0000
.0005
.0037
.0176
.0592
.0000
.0003
.0019
.0093
.0000
.0001
.0007
.0000
.0001 .0000
5
6
7
8
9
.9999
1.0000
.9978
.9997
1.0000
.9389
.9819
.9958
.9992
.9999
.8516
.9434
.9827
.9958
.9992
.7216
.8689
.9500
.9848
.9963
.4032
.6096
.7869
.9050
.9662
.1509
.3036
.5000
.6964
.8491
.0338
.0950
.2131
.3902
.5968
.0037
.0152
.0500
.1311
.2784
.0008
.0042
.0173
.0566
.1484
.0001
.0008
.0042
.0181
.0611
.0000
.0003
.0022
.0000
.0001
10
11
12
13
14
1.0000 .9999
1.0000
.9993
.9999
1.0000
.9907
.9981
.9997
1.0000
.9408
.9824
.9963
.9995
1.0000
.7827
.9095
.9729
.9948
9995
.4845
.7031
.8732
.9647
.9953
.3135
.5387
.7639
.9198
.9866
.1642
.3518
.6020
.8329
.9648
.0127
.0556
.1841
.4510
.7941
.0006
.0055
.0362
.1710
.5367
.0000
.0004
.0096
.1399

533

n

=

20

p
x

.01 .05 .10 .20 .25 .30 .40 .50 .60 .70 .75 .80 .90 .95 .99
0
1
2
3
4
.8179
.9831
.9990
1.0000
.3585
.7358
.9245
.9841
.9974
.1216
.3917
.6769
.8670
.9568
.0115
.0692
.2061
.4114
.6296
.0032
.0234
.0913
.2252
.4148
.0008
.0076
.0355
.1071
.2375
.0000
.0005
.0036
.0160
.0510
.0000
.0002
.0013
.0059
.0000
.0003
5
6
7
8
9
.9997
1.0000
.9887
.9976
.9996
.9999
1.0000
.8042
.9133
.9679
.9900
.9974
.6172
.7858
.8982
.9591
.9861
.4164
.6080
.7723
.8867
.9520
.1256
.2500
.4159
.5956
.7553
.0207
.0577
.1316
.2517
.4119
.0016
.0065
.0210
.0565
.1275
.0000
.0003
.0013
.0051
.0171
.0000
.0002
.0009
.0039
.0000
.0001
.0006
10
11
12
13
14
.9994
.9999
1.0000
.9961
.9991
.9998
1.0000
.9829
.9949
.9987
.9997
1.0000
.8725
.9435
.9790
.9935
.9984
.5881
.7483
.8684
.9423
.9793
.2447
.4044
.5841
.7500
.8744
.0480
.1133
.2277
.3920
.5836
.0139
.0409
.1018
.2142
.3828
.0026
.0100
.0321
.0867
.1958
.0000
.0001
.0004
.0024
.0113
.0000
.0003
15
16
17
18
19
.9997
1.0000
.9941
.9987
.9998
1.0000
.9490
.9840
.9964
.9995
1.0000
.7625
.8929
.9645
.9924
.9992
.5852
.7748
.9087
.9757
.9968
.3704
.5886
.7939
.9308
.9885
.0432
.1330
.3231
.6083
.8784
.0026
.0159
.0755
.2642
.6415
.0000
.0010
.0169
.1821

n

=

25

p
x

.01 .05 .10 .20 .25 .30 .40 .50 .60 .70 .75 .80 .90 .95 .99
0
1
2
3
4
.7778
.9742
.9980
.9999
1.0000
.2774
.6424
.8729
.9659
.9928
.0718
.2712
.5371
.7636
.9020
.0038
.0274
.0982
.2340
.4207
.0008
.0070
.0321
.0962
.2137
.0001
.0016
.0090
.0332
.0905
.0000
.0001
.0004
.0024
.0095
.0000
.0001
.0005 .0000
5
6
7
8
9
.9988
.9998
1.0000
.9666
.9905
.9977
.9995
.9999
.6167
.7800
.8909
.9532
.9827
.3783
.5611
.7265
.8506
.9287
.1935
.3407
.5118
.6769
.8106
.0294
.0736
.1536
.2735
.4246
.0020
.0073
.0216
.0539
.1148
.0001
.0003
.0012
.0043
.0132
.0000
.0001
.0005 .0000
10
11
12
13
14
1.0000 .9944
.9985
.9996
.9999
1.0000
.9703
.9893
.9966
.9991
.9998
.9022
.9558
.9825
.9940
.9982
.5858
.7323
.8462
.9222
.9656
.2122
.3450
.5000
.6550
.7878
.0344
.0778
.1538
.2677
.4142
.0018
.0060
.0175
.0442
.0978
.0002
.0009
.0034
.0107
.0297
.0000
.0001
.0004
.0015
.0056 .0000
15
16
17
18
19
1.0000 .9995
.9999
1.0000
.9868
.9957
.9988
.9997
.9999
.8852
.9461
.9784
.9927
.9980
.5754
.7265
.8464
.9264
.9706
.1894
.3231
.4882
.6593
.8065
.0713
.1494
.2735
.4389
.6217
.0173
.0468
.1091
.2200
.3833
.0001
.0005
.0023
.0095
.0334
.0000
.0002
.0012
20
21
22
23
24
1.0000 .9995
.9999
1.0000
.9905
.9976
.9996
.9999
1.0000
.9095
.9668
.9910
.9984
.9999
.7863
.9038
.9679
.9930
.9992
.5793
.7660
.9018
.9726
.9962
.0980
.2364
.4629
.7288
.9282
.0072
.0341
.1271
.3576
.7226
.0000
.0001
.0020
.0258
.2222
534


Independent events

The probability of an event,

A

, is symbolised by P(

A

) and the probability of the
event not happening,

A

, is given by P(

A

).
P(

A

)

+

P(

A

)

=

1 and P(

A

)

=

1

P(

A

).
If two compound events have absolutely no inuence upon each other, they are
called

independent

events.
Let P(

A

) be the probability of event

A

, and P(

B

) the probability of event

B

. If the
events are independent then P(

A

and

B

)

=

P(

A

)

P(

B

). This is called the

multiplication rule

.
Tree diagrams can be used as a graphical method of displaying the outcomes and
computing the probabilities for independent events.

Mutually exclusive events

In a compound event from a single event space, if two events cannot happen at the
same time they are said to be

mutually exclusive

.

Venn diagrams

Venn diagrams are a graphical method of showing the relationship between sets.
Let P(

A

), P(

B

) be the probabilities of events

A

and

B

, respectively. If the events are
mutually exclusive then P(either

A

or

B

)

=

P(

A

)

+

P(

B

). This is called the

addition
rule

.
For any compound event, P(both

A

and

B

) is the overlap, or

intersection

, between
two events.
The addition rule for probability states that
P(either

A

or

B

)

=

P(

A

)

+

P(

B

)

P(both

A

and

B

).

Probability distributions

A rectangular distribution results from trials where each outcome has an equal
chance of occurring.
A binomial experiment is concerned with only two outcomes, labelled a success
and a failure.
Pascals triangle and binomial cumulative distribution tables are useful in
determining binomial probabilities in repeated trials.
A graphics calculator is useful in calculating binomial probabilities.
summary
S
A B

535

1

When two coins are tossed, the probability of getting at

least

one Head is:

A

0

B

0.25

C

0.5

D

0.75

E

1

2

Two dice are tossed. The probability that the numbers on each die are equal is:

A

0

B C D E

3

When tossing a pair of dice, the probability of obtaining a total of 4 is:

A B C D E

4

Two 6-sided dice are rolled and the sum on their faces is noted.

a

Copy the table below into your books and complete it, giving the probability of each
outcome.

b

What is the probability that the sum is an even number?

c

To win the game of Craps on the rst throw of the dice the player must roll a 7 or an 11.
What is the probability of winning on the rst throw?

d

To lose the game of Craps on the rst throw the player must roll a 2, 3 or 12. What is the
probability of losing on the rst throw?

5

If the probability of a baby being born a girl is 0.5, calculate the probability of 3 children in
a family being:

a

a boy, girl, boy in that order

b

two boys and a girl in any order.

6

In a survey of voters, it was found that 3240 supported the Labor Party, 3670 supported the
Liberal Party and 1240 supported neither party. Find the probability that a voter, chosen at
random, is a Labor Party voter. Give your answer correct to 4 decimal places.

7

Australia and South Africa play two rugby matches. Based on previous meetings the
probability that Australia wins is 0.56. Construct a tree diagram and nd the probability that
the teams win one game each.

8

A factory is protected by three independent alarm systems. The probability that an alarm
fails to work is 0.05. What is the probability that at least one alarm is working?

Sum

2 3 4 5 6 7 8 9 10 11 12

Probability
10A
CHAPTER
review
multiple choice
10A
multiple choice
1
36
------
1
18
------
1
6
---
1
2
---
multiple choice
10A
1
3
---
1
4
---
1
9
---
1
12
------
1
36
------
10A
1
36
------
1
18
------
10A
10A
10A
10A
536


9

When tossing two dice, nd the probability that the total is:

a

an odd number

b a number in the range 2 to 6
c either an even number or a prime number.
10
If the probability of event A depends upon the outcome of event B then the events are:
A mutually exclusive B independent
C not independent D complementary
E supplementary
11
If two events are mutually exclusive, then:
A their probabilities must be equal
B their probabilities must not be equal
C the probability of either happening is the product of their individual probabilities
D the probability of either happening is the sum of their individual probabilities
E the probability of one event is conditional upon the other.
12 The probability that Brian wins a set of tennis against John is 0.75. To win a match a player
must win 2 sets. What is the probability that:
a Brian wins the rst 2 sets?
b the match lasts for 3 sets?
c Brian wins (in 2 or 3 sets)?
13
In an urn there are 17 green balls, 12 white balls and 23 red balls. The probability that a
randomly selected ball is not green is closest to:
A 0.231 B 0.326 C 0.558 D 0.660 E 0.673
14 A container holds 7 balls 5 green and 2 yellow. A ball is drawn, its colour noted and then
replaced, and then a second ball is drawn.
a What is the probability that:
i both are green? ii they are of different colours?
b What are the probabilities for i and ii if the balls are not replaced?
15
From the data in the gure at right, P(both A and B) is equal to:
A 0.1 B 0.2 C 0.3 D 0.4 E 0.6
16 In a group of 20 students, 10 have neither blond hair nor blue
eyes, 5 have both and 9 have blue eyes. Construct a Venn
diagram. How many have blond hair?
17 Let P(A) = 0.3, P(B) = 0.5 and P(either A or B) = 0.55. By sketching a Venn diagram of this
situation, nd the intersection; that is, P(both A and B).
18
The students attending a secondary school in Wallaby Plains are encouraged to play either
football or tennis or both. Of the 50 students in the school, 30 decide to play football and 15
decide to play both football and tennis. The number who play tennis is:
A 5 B 15 C 20 D 25 E 35
10A,B
multiple choice
10A,B
10B
multiple choice
10B
multiple choice
10B
10B
A
0.4
B
0.2 0.3 0.1
10C
multiple choice
10C
10C
10C
multiple choice
19 At a meeting of the Annerley Junior Rugby League Supporters Club a vote was taken on a
key proposal. Of the 43 people at the meeting, 30 were in favour of the proposal and 25
were against it. Some had voted both ways.
a Draw a Venn diagram illustrating this situation. (Assume everyone at the meeting voted
at least once.)
b What is the probability that a person selected at random from the meeting voted in
favour of the proposal?
20
Which of the following could be used to simulate coin tossing?
A Tossing two dice and letting an even total represent a Head.
B Using a calculators random-number generator and letting any number < 0.5 represent a Head.
C Opening a book at a random page and if the page number is odd, letting that represent a
Head.
D Either A or B.
E Either A or B or C.
21 Provide each of the following:
a two conditions for an event to be classed as binomial
b an example of an event which is binomial
c an example of an event which is not binomial.
22 A die is rolled 5 times. What is the probability that a 6 will appear exactly:
a once? b 3 times?
23 A multiple-choice test has 10 questions each with 4 options. What is the probability of
scoring exactly 6 out of 10 by pure guesswork?
24 A manufacturing process produces on average
9% defective items. In a group of 10 items, what
is the probability that there will be:
a no defective items?
b 1 defective item?
c no more than 1 defective item?
25 Use the binomial cumulative distribution table
from pages 5323 or a graphics calculator to
calculate:
a P(x 10) for n = 20 and p = 0.6
b P(x 15) for n = 20 and p = 0.8.
26 A multiple-choice test has 20 questions each
with 5 options.
a What is the probability of guessing any one
answer?
b Using the binomial cumulative distribution tables on pages 5323 or a graphics
calculator, calculate the probability of scoring at least 5 out of 20 by pure guesswork.
27 Find the probability that in a binomial experiment where P(success) = 0.5:
a exactly 12 successes occur in 20 trials
b at least 12 successes occur in 20 trials.
10C
10D
multiple choice
10D
10D
10D
10D
10E
10E
10E
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Spreadsheet 069: Investigate tree diagrams
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Spreadsheet 052: Investigate generating random
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Spreadsheet 043: Investigate Pascals triangle
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10B Compound events mutually exclusive
events
10D The binomial distribution using Pascals
triangle
10E Binomial probabilties through tables
Chapter review
www.jacplus.com.au
syllabus
reference
Elective topic:
Introduction to models for
data
In this
chapter
11A z-scores
11B Comparison of scores
11C Distribution of scores
11D Standard normal tables
11E Odds
11F Two-up
11G Roulette
11H Common fallacies in
probability
11I Mathematical expectation

11

The normal
distribution
and games of
chance
540


Introduction

As we have seen, frequency distributions can be developed by

direct measurement

. In
many circumstances, however, statisticians are able to calculate frequency distributions
from bulk data, without taking direct measurements at all. They would, for example, be
able to evaluate the proportion of a given population whose height fell between 175 cm
and 185 cm. They can do this because data are frequently distributed in special patterns
that can be examined mathematically.
One of the most important frequency distributions is the

normal distribution

. In this
chapter we shall see how the normal distribution can be used to model many different
situations: the scores of a group of students taking a test; physical characteristics such
as height, weight and strength; the odds of winning in games of chance; and the quality
of manufactured products.
The normal distribution is widely used in research and industry. Those who are
responsible for quality control can take samples and test whether (for example) the
cables they make are strong enough or whether their cereal boxes contain enough of
their product. Consequently, they can determine if there are problems with their manu-
facturing equipment or its settings.

1

Use your calculator to generate 50 random integers in the range 1 to 5 inclusive. Draw
a histogram to display your resulting distribution.

2 a

Find the mean value of the following scores.
4, 6, 8, 10, 5, 9, 6, 9, 2, 8

b

Use your calculator to determine the standard deviation.

c

A score of 2 would be how far from the mean?

3

Which of the following two distributions has the scores spread more tightly around the
mean?

a

mean 50, standard deviation 10

b

mean 50, standard deviation 5

4

Calculate the range represented by 50

5.

5

Explain each of the following.

a

x

>

40

b

x

40

c

20

<

x

<

30
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541

The normal (or Gaussian) distribution is one of the most important in statistical
theory. It is named after Carl Friedrich Gauss, one of the great mathematicians in
history.

Rolling marbles

To develop an intuitive feel for the normal distribution, collect and collate data
through the following activity.

1

Roll a marble down an incline as shown in the diagram above. Ensure the
marble is released from exactly the same point in the same way each time, and
measure the distance that the marble takes to stop.

2

Repeat the experiment 60 times. For each of these 60 trials, record:

a

trial number

b

horizontal distance travelled.

3

Collate the data into approximately 12 equally spaced intervals, and draw a

histogram

for the data.
The distribution of your data
should be similar to that shown
at right. These data were
obtained from 250 trials.
You can see from the shape of
the frequency polygon that if the
number of points were increased
and the interval width were reduced,
a curve like that at right would
result.
This curve is called a

normal
curve

.
i
n
v
e
s
tiga
t
i
o
n
i
n
v
e
s
t i g a
t
i
o
n
Marble (starting position)
Measure this distance
Final
position
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0
5
10
15
20
25
30
35
40
175
185
195
205
215
225
235
245
255
265
275
285
295
Distance (cm)
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
542


Probability and
the normal curve

Consider the histogram at right,
representing the distance taken
for the rolling marble to come to rest.
What is the probability that one of
the trials selected at random has a
stopping distance greater than or equal
to 260 cm?
There are two ways of answering this
question.
Method 1: Count the number of trials in the appropriate categories:
261270

20
271280

13
281290

8
291300

4
Total 45
P(stopping distance

>

260)

=

=

0.18
Method 2: The second method may seem similar in this context but has a key differ-
ence that will be useful later.
P(stopping distance

>

260)

=

Each of the rectangles in the histogram has a base whose length is 10.
P(stopping distance

>

260)

=

=

=

0.18
We now consider the probability distribution for
a very large number of trials. This discussion will
use the terms

mean

and

standard deviation

. As the
number of trials increases and the measurements on
the

x

-axis become ner, the histogram becomes a
smooth curve called the

normal curve

. Because of its
shape, it is sometimes described as a

bell curve

.
To answer a question such as, What percentage of
stopping distances is greater than 260 cm?, we would
need to calculate the shaded area and divide by the
total area under the curve.
We shall return to this problem after practising easier calculations of this type.
0
5
10
15
20
25
30
35
40
175
185
195
205
215
225
235
245
255
265
275
285
295
Distance (cm)
F
r
e
q
u
e
n
c
y
45
250
---------
area under the histogram to the right of 260
total area
--------------------------------------------------------------------------------------------------------
10 20 10 13 10 8 10 4 + + +
10 4 10 8 10 13 10 8 10 4 + + + + +
-------------------------------------------------------------------------------------------------------------------
10 45
10 250
---------------------
235 260
235 260
x = 235
s = 26.5

C h a p t e r 1 1 T h e n o r m a l d i s t r i b u t i o n a n d g a m e s o f c h a n c e

543

z

-scores

A normal distribution is a statistical
representation of data, where a set of
scores is symmetrically distributed
about the mean. Most continuous
variables in a population such as
height, mass and time are
normally distributed. In a normal
distribution, the frequency histogram is
symmetrical and begins to take on a bell shape
as shown by the following gure.
The normal distribution is symmetrical about the mean, which has the same value as
the median and mode in this distribution. The graph of a normal distribution will extend
symmetrically in both directions and will always remain above the

x

-axis.
The spread of the normal distribution will depend on the standard deviation. The lower
the standard deviation, the more clustered the scores will be around the mean. The gure
below left shows a normal distribution with a low standard deviation, while the gure
below right shows a normal distribution with a much greater standard deviation.
To gain a comparison between a particular score and the rest of the population we
use the

z

-score

. The

z

-score (or

standardised score

) indicates the position of a
particular score in relation to the mean. A

z

-score is a very important statistical
measure, and later in the chapter some of its uses will be explained.
A

z

-score of 0 indicates that the score obtained is equal to the mean; a negative

z

-score indicates that the score is below the mean; a positive

z

-score indicates a score
above the mean.
The

z

-score measures the distance from the mean in terms of the standard deviation.
A score that is exactly one standard deviation above the mean has a

z

-score of 1.
A score that is exactly one standard deviation below the mean has a

z

-score of

1.
To calculate a

z

-score we use the formula:

where

x

=

the score,

=

the mean and

s

=

the standard deviation.
x
z
x x
s
------------ =
x
544


Dales

z

-score is 2, meaning that his IQ is exactly two standard deviations above the mean.
Not all

z

-scores will be whole numbers; in fact most will not be whole numbers. A
whole number indicates only that the score is an exact number of standard deviations
above or below the mean.
The negative

z

-score in Worked example 2 indicates that Dieters height is below the
mean but, in this case, by less than one standard deviation.
When examining

z

-scores, care must be taken to use the appropriate value for the
standard deviation. If examining a population, the population standard deviation

x

or

x

n

should be used and if a sample has been taken, the sample standard deviation

S

x

or

x

n

1

should be used.
In an IQ test the mean IQ is 100 and the standard deviation is 15. Dales test results give
an IQ of 130. Calculate this as a z-score.
THINK WRITE
Write the formula. z =
Substitute for x, and s. =
Calculate the z-score. = 2
1
x x
s
-----------
2
x
130 100
15
------------------------
3
1
WORKEDExample
A sample of professional basketball players gives the mean height as 192 cm with a
standard deviation of 12 cm. Dieter is 183 cm tall. Calculate Dieters height as a z-score.
THINK WRITE
Write the formula. z =
Calculate the z-score. = 0.75
1
x x
s
-----------
2
x
183 192
12
------------------------
3
2
WORKEDExample
To obtain the average number of hours study done by Year 12 students per week,
Kate surveys 20 students and obtains the following results.
12 18 15 14 9 10 13 12 18 25
15 10 3 21 11 12 14 16 17 20
a Calculate the mean and standard deviation (correct to 2 decimal places).
b Robert does 16 hours of study each week. Express this as a z-score based on the above
results. (Give your answer correct to 2 decimal places.)
3
WORKEDExample
C h a p t e r 1 1 T h e n o r m a l d i s t r i b u t i o n a n d g a m e s o f c h a n c e 545
z-scores
1 In a mathematics exam the mean score is 60 and the standard deviation is 12.
Chifunes mark is 96. Calculate her mark as a z-score.
2 In an English test the mean score was 55 with a standard deviation of 5. Adrian scored
45 on the English test. Calculate Adrians mark on the test as a z-score.
3 Tracy is a nurse, and samples the mass
of 50 newborn babies born in the
hospital in which she works. She nds
that the mean mass is 3.5 kg, with a
standard deviation of 0.4 kg.
What would be the standardised
score of a baby whose birth
mass was:
a 3.5 kg? b 3.9 kg?
c 2.7 kg? d 4.7 kg?
e 3.1 kg?
THINK WRITE
a Enter the data into your calculator. a
Obtain the mean from your calculator. = 14.25
Obtain the standard deviation from
your calculator using the sample
standard deviation.
s = 4.88
b Write the formula. b z =
Calculate the z-score. = 0.36
1
2
x
3
1
x x
s
-----------
2 x
16 14.25
4.88
-------------------------
3
1. A data set is normally distributed if it is symmetrical about the mean.
2. The graph of a normally distributed data set is a bell-shaped curve that is
symmetrical about the mean. In such a distribution the mean, median and mode
are equal.
3. A z-score is used to measure the position of a score in a data set relative to the
mean.
4. The formula used to calculate a z-score is , where x = the score,
= the mean and s = the standard deviation.
z
x x
s
----------- =
x
remember
11A
WORKED
Example
1
4 Ricky nds that the mean number of hours spent watching television each week by
Year 12 students is 10.5 hours, with a standard deviation of 3.2 hours. How many
hours of television are watched by a person who has a standardised score of:
a 0? b 1? c 2? d 1? e 3 ?
5 Intelligence (IQ) tests have a mean of 100 and a standard deviation of 15. Calculate
the z-score for a person with an IQ of 96. (Give your answer correct to 2 decimal
places.)
6 The mean time taken for a racehorse to run 1 km is 57.69 s, with a standard deviation
of 0.36 s. Calculate the z-score of a racehorse that runs 1 km in 58.23 s.
7 In a major exam every subject has a mean score of 60 and a standard deviation of
12.5. Clarissa obtains the following marks on her exams. Express each as a z-score.
a English 54 b Maths A 78 c Biology 61
d Geography 32 e Art 95
8 The mean time for athletes over 100 m is 10.3 s, with a standard deviation of 0.14 s.
What time would correspond to a z-score of:
a 0? b 2? c 0.5?
d 3? e 0.35? f 1.6?
9 The length of bolts being produced by a machine needs to be measured. To do this, a
sample of 20 bolts are taken and measured. The results (in mm) are given below.
20 19 18 21 20 17 19 21 22 21
17 17 21 20 17 19 18 22 22 20
a Calculate the mean and standard deviation of the distribution.
b A bolt produced by the machine is 22.5 mm long. Express this result as a z-score.
(Give your answer correct to 2 decimal places.)
10 A garage has 50 customers who have credit accounts with them. The amount spent by
each credit account customer each week is shown in the table below.
a Copy and complete the table.
b Calculate the mean and standard deviation.
c Calculate the standardised score that corresponds to a customers weekly account
of:
i $50 ii $100 iii $15.40.
11
In a normal distribution, the mean is 21.7 and the standard deviation is 1.9. A score of
20.75 corresponds to a z-score of:
A 1 B 0.95 C 0.5 D 0.5 E 1
Amount ($) Class centre Frequency
0<20 2
20<40 8
40<60 19
60<80 15
80<100 6
WORKED
Example
2
WORKED
Example
3
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12
In a normal distribution the mean is 58. A score of 70 corresponds to a standardised
score of 1.5. The standard deviation of the distribution is:
A 6 B 8 C 10 D 12 E 18
13
In a normal distribution, a score of 4.6 corresponds to a z-score of 2.4. It is known
that the standard deviation of the distribution is 0.8. The mean of the distribution is:
A 1.76 B 2.2 C 2.68 D 6.52 E 6.8
14 The results of 24 students sitting a mathematics exam are listed below.
95 63 45 48 78 75 80 66 60 58 59 62
52 57 64 75 81 60 65 70 65 63 62 49
a Calculate the mean and standard deviation of the exam marks.
b Calculate the standardised score of the highest score and the lowest score, correct
to 2 decimal places.
15 The results of Lukes exams are shown in the table below.
Convert each of Lukes results to a standardised score.
Comparison of scores
An important use of z-scores is to compare scores from different data sets. Suppose that
in your mathematics exam your result was 74 and in English your result was 63. In
which subject did you achieve the better result?
It may appear, at rst glance, that the mathematics result is better, but this does not
take into account the difculty of the test. A mark of 63 on a difcult English test may
in fact be a better result than 74 if it was an easy maths test.
The only way that we can fairly compare the results is by comparing each result with
its mean and standard deviation. This is done by converting each result to a z-score.
If for mathematics, = 60 and s = 12, then z =
=
= 1.167
Subject Lukes mark Mean Standard deviation
English 72 60 12
Mathematics 72 55 13
Biology 76 64 8
Legal studies 60 70 5
Drama 60 50 15
Music 50 58 10
multiple choice
multiple choice
x
x x
s
-----------
74 60
12
------------------
If for English, = 50 and s = 8, then z =
=
= 1.625
The English result is better because the higher z-score shows that the 63 is higher in
comparison to the mean of each subject.
In each example the circumstances must be read carefully to see whether a higher or
lower z-score is better. For example, if we were comparing times for runners over
different distances, the lower z-score would be the better one.
x
x x
s
-----------
63 50
8
------------------
Janine scored 82 in her Physics exam and 78 in her Chemistry exam. In Physics, the mean
was 62 and the standard deviation 10, while in Chemistry, the mean was 66 and the standard
deviation 5.
a Write both results as a standardised score.
b Which is the better result? Explain your answer.
THINK WRITE
a Write the formula for each subject. a Physics: z = Chemistry: z =
Substitute for x, and s. = =
Calculate each z-score. = 2 = 2.4
b Explain that the subject with the highest
z-score is the better result.
b The Chemistry result is better because of the
higher z-score.
1
x x
s
-----------
x x
s
-----------
2
x
82 62
10
------------------
78 66
5
------------------
3
4
WORKEDExample
In international swimming the mean time for the mens 100-m freestyle is 50.46 s with a
standard deviation of 0.6 s. For the 200-m freestyle, the mean time is 1 min 51.4 s with a
standard deviation of 1.4 s.
Sams best time is 49.92 s for 100 m and 1 min 49.3 s for 200 m. At a competition Sam can
enter only one of these events. Which event should he enter?
THINK WRITE
Write the formula for both events. 100 m: z = 200 m: z =
Substitute for x, and s. (For 200 m
convert time to seconds.)
= =
Calculate the z-scores. = 0.9 = 1.5
The best event is the one with the lower
z-score.
The z-score for 200 m is lower, indicating that
Sams time is further below the mean and that
this is the event that he should enter.
1
x x
s
-----------
x x
s
-----------
2
x
49.92 50.46
0.6
---------------------------------
109.3 111.4
1.4
---------------------------------
3
4
5
WORKEDExample
1 Kens English mark was 75 and his Mathematics mark was 72. In English, the mean
was 65 with a standard deviation of 8, while in Mathematics the mean mark was 56
with a standard deviation of 12.
a Convert the mark in each subject to a z-score.
b In which subject did Ken perform better? Explain your answer.
2 In the rst Mathematics test of the year the mean mark was 60 and the standard
deviation was 12. In the second test the mean was 55 and the standard deviation was
15. Barbara scored 54 in the rst test and 50 in the second test. In which test did
Barbara do better? Explain your answer.
3
The table at right shows the mean
and standard deviation in four
subjects. Kellys marks were: English
67.5, Mathematics 70, Biology 62
and Geography 55. In which subject
did Kelly achieve her best result?
A English B Mathematics
C Biology D Geography
E Both English and Mathematics
4
The table below shows the mean and standard deviation of unit prices in four
Australian cities. The table also shows the cost of building a similar one-bedroom unit
in each of the cities.
In which city is the standardised cost of building the unit least?
A Sydney B Melbourne C Both Sydney and Melbourne
D Adelaide E Brisbane
City Mean Standard deviation Cost
Sydney $230 000 $30 000 $215 000
Melbourne $215 000 $28 000 $201 000
Adelaide $185 000 $25 000 $160 000
Brisbane $190 000 $20 000 $165 000
1. Scores can be compared by their z-scores because z-scores compare the score
with the mean and the standard deviation.
2. Read each question carefully to see if a higher or lower z-score is a better
outcome.
remember
11B
WORKED
Example
4
multiple choice
Subject Mean
Standard
deviation
English 60 12
Mathematics 65 8
Biology 50 16
Geography 52 7.5
multiple choice
5 Karrie is a golfer who scored 70 on course A, which has a mean of 72 and a standard
deviation of 2.5. On course B, Karrie scores 69. The mean score on
course B is 72 and the standard deviation is 4. On which course did
Karrie play the better round? (In golf the lower score is better.)
6 Steve is a marathon runner. On the Olympic course in Atlanta the
mean time was 2 hours and 15 minutes with a standard deviation of
4.5 minutes. On Sydneys Olympic course the mean time was 2 hours
and 16 minutes with a standard deviation of 3 minutes.
In Atlanta Steves time was 2 hours 17 minutes and in Sydney his time
was 2 hours 19 minutes.
a Write both times as a standardised score.
b Which was the better performance? Explain your answer.
7
The table below shows the mean and standard deviation of
times in the 100-m by the same group of athletes on ve dif-
ferent days. It also shows Matts time on each of these days.
On what day did Matt give his best performance?
A 1 Jan. B 8 Jan. C 15 Jan.
D 22 Jan. E 29 Jan.
8
In which of the following subjects did Alyssa achieve her best standardised result?
A English B Mathematics C Biology
D Music E Accounting
Day Mean Standard deviation Matts time
1 Jan. 10.25 0.14 10.18
8 Jan. 10.21 0.15 10.12
15 Jan. 10.48 0.28 10.30
22 Jan. 10.14 0.09 10.05
29 Jan. 10.22 0.12 10.11
Subject Alyssas mark Mean Standard deviation
English 54 60 12
Mathematics 50 55 15
Biology 60 65 8
Music 53 62 9
Accounting 56 64 10
WORKED
Example
5
multiple choice
multiple choice
9 Shun Mei received a mark of 64 on her Mathematics exam and 63 on
her Chemistry exam. To determine how well she actually did on the
exams, Shun Mei sampled 10 people who sat for the same
exams and the results are shown below.
Mathematics:
56 45 82 90 41 32 65 60 55 69
Chemistry:
55 63 39 92 84 46 47 50 58 62
a Calculate the mean and standard deviation
for Shun Meis sample in each subject.
b By converting each of Shun Meis marks
to z-scores, state the subject in which
she performed better.
10 Ricardo scored 85 on an entrance test for a
job. The test has a mean score of 78 and a
standard deviation of 8. Kory sits a similar
exam and scores 27. In this exam the mean is 18
and the standard deviation is 6. Who is the better suited
candidate for the job? Explain your answer.
1 In a normal distribution the mean is 32 and the standard deviation 6. Convert a
score of 44 to a z-score.
2 In a normal distribution the mean is 1.2 and the standard deviation is 0.3. Convert
a score of 0.6 to a z-score.
3 The mean of a distribution is 254 and the standard deviation is 39. Write a score
of 214 as a standardised score, correct to 2 decimal places.
4 The mean mark on an exam is 62 and the standard deviation is 9.5. Convert a
mark of 90 to a z-score. (Give your answer correct to 2 decimal places.)
5 Explain what is meant by a z-score of 1.
6 Explain what is meant by a z-score of 2.
7 In a distribution, the mean is 50 and the standard deviation is 10. What score
corresponds to a z-score of 0?
8 In a distribution the mean score is 60. If a mark of 76 corresponds to a
standardised score of 2, what is the standard deviation?
9 Cynthia scored a mark of 65 in English where the mean was 55 and the standard
deviation is 8. In Mathematics Cynthia scored 66 where the mean was 52 and the
standard deviation 10. Convert the mark in each subject to a z-score.
10 In which subject did Cynthia achieve the better result?
1
Distribution of scores
In any normal distribution, the percentage of scores that lie within a certain number
of standard deviations of the mean is always the same, provided that the sample is
large enough. This is true irrespective of the values of the mean and standard
deviation.
In any normal distribution, approximately
68% of the values will lie within one standard
deviation of the mean. This means 68% of
scores will have a z-score between 1 and 1.
This is shown on the normal curve at right:
Approximately 95% of the values lie within
2 standard deviations, or have a z-score of
between 2 and 2.
Approximately 99.7% of scores lie within 3
standard deviations, or have a z-score that lies
between 3 and 3.
If we know that a random variable is approximately normally distributed, and we
know its mean and standard deviation, then we can use this rule to quickly make some
important statements about the way in which the data values are distributed.
Comparison of subjects
1 List all the subjects that you study.
Arrange the subjects in the order
that you feel is from your
strongest subject to your weakest.
2 List your most recent examination
results in each subject.
3 From your teachers, nd out the
mean and standard deviation of
the results in each subject.
4 Convert each of your marks to
a standardised score.
5 List your subjects from best to
worst based on the standardised
score and see how this list
compares with the initial list
that you wrote.
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Interactivity:
Normal distributions
int-0182
eBookplus eBookplus
3 0 1
68%
2 3
z
2 1
95%
3 0 1 2 3
z
2 1
3 0 1 2 3
z
2 1
99.7%
Experience has shown that the scores obtained on a commonly used IQ test can be
assumed to be normally distributed with a mean of 100 and a standard deviation of 15.
Draw a curve to illustrate each of the following and nd approximately what percentage of
the distribution lies:
a between 85 and 115?
b between 70 and 130?
c between 55 and 145?
THINK WRITE
a Calculate the z-scores for
85 and 115.
a
Draw a diagram.
68% of scores have a z-score
between 1 and 1.
68% of the scores will lie between
85 and 115.
b Calculate the z-scores for
70 and 130.
b
Draw a diagram.
95% of scores have a z-score
between 2 and 2.
95% of the scores will lie between 70 and
130.
c Calculate the z-scores for
55 and 145.
c
Draw a diagram.
99.7% of scores have a z-score
between 3 and 3.
99.7% of the scores will lie between 55 and
145.
1
z
85 100
15
--------------------- =
1 =
z
115 100
15
------------------------ =
1 =
2
3 0 1
68%
2 3
z
2 1
3
1
z
70 100
15
--------------------- =
2 =
z
130 100
15
------------------------ =
2 =
2
95%
3 0 1 2 3
z
2 1
3
1
z
55 100
15
--------------------- =
3 =
z
145 100
15
------------------------ =
3 =
2
3 0 1 2 3
z
2 1
99.7%
3
6
WORKEDExample
A graphics calculator can be used to readily determine the percentage of a distribution
which lies between certain values. This can be illustrated with Worked example 6.
1. To calculate the cumulative probability
between two scores, press:
2: STAT
(DIST)
(NORM)
(Ncd).
Enter the data as shown for part a.
2. To calculate the probability, press
(CALC).
This shows that 68% of the scores lie between 85 and 115. It also shows that the z-score
of 85 is 1, and the z-score of 115 is 1.
3. Repeat this procedure for parts b and c.
1. To calculate the cumulative probability
between two scores, press:
HOME c
1: Calculator 1
MENU b
5: Probability 5
2: Normal Cdf 2.
Graphics Calculator
Graphics Calculator
tip!
tip!
MENU
F5
F1
F2
F1
We can also make statements about the percentage of scores that lie in the tails of the
distribution by using the symmetry of the distribution and remembering that 50% of
scores will have a z-score of greater than 0 and 50% will have a z-score less than 0.
2. Enter the data as shown for part a,
pressing Tab e to advance to the next
eld.
3. To calculate the probability select OK
and then press ENTER .
This shows that 68% of the scores obtained on a commonly used IQ test lie between
85 and 115.
4. Repeat the steps above for parts b
and c.
When the results of an examination were analysed, the mean was found to be 60 and the
standard deviation, 12. What percentage of candidates in the examination scored above 84?
THINK WRITE
Calculate 84 as a z-score using = 60
and s = 12.
z =
=
= 2
Draw a sketch showing 95% of z-scores
lie between 2 and 2.
5% of z-scores therefore lie outside this
range. Half of these scores lie below 2
and half are above 2.
Give a written answer. 2.5% of scores are greater than 84.
1
x
x x
s
-----------
84 60
12
------------------
2
60 84
2 0 2
2.5% 2.5%
95%
z
3
4
7
WORKEDExample
Some important terminology is used in connection with this rule. We can say that if
95% of scores have a z-score between 2 and 2, then if one member of the population
is chosen, that member will very probably have a z-score between 2 and 2.
If 99.7% of the population has a z-score between 3 and 3, then if one member of that
population is chosen, that member will almost certainly have a z-score between 3 and 3.
Because it is almost certain that all members of the data set will lie within three stan-
dard deviations of the mean, if a possible member of the data set is found to be outside
this range, one should suspect a problem.
For example, if a machine is set to deposit 200 mL of liquid into a bottle, with a
standard deviation of 5 mL, and then a bottle is found to have contents of 220 mL, one
would expect there to be a problem with the settings on the machine because a gure of
220 mL is four standard deviations above the mean.
A machine produces tyres that have a mean thickness
of 12 mm, with a standard deviation of 1 mm.
If one tyre that has been produced is chosen at
random, within what limits will the thickness
of the tyre:
a very probably lie?
b almost certainly lie?
THINK WRITE
a A score will very probably have a
z-score between 2 and 2.
a
A z-score of 2 corresponds to a tyre
of 10 mm thickness.
of 14 mm thickness.
A tyre chosen will very probably have a
thickness of between 10 and 14 mm.
b A score will almost certainly have a
z-score between 3 and 3.
b
of 9 mm thickness.
of 15 mm thickness.
A tyre chosen will almost certainly have a
thickness of between 9 and 15 mm.
1
If z 2 =
x x 2s =
12 2 1 =
10 =
If z 2 =
x x 2s + =
12 2 + 1 =
14 =
2
3
1 If z 3 =
x x 3s =
12 3 1 =
9 =
If z 3 =
x x 3s + =
12 3 + 1 =
15 =
2
3
8
WORKEDExample
This knowledge of z-scores is then used in industry by the quality control depart-
ment. In the previous example, a sample of bottles would be tested and the z-scores
recorded. The percentage of z-scores between 1 and 1 should be close to 68%,
between 2 and 2 close to 95% and between 3 and 3 close to 99.7%. If these percent-
ages are not correct, the machinery needs to be checked for faults.
1 The temperature on a January day in a city is normally distributed with a mean of 26
and a standard deviation of 3. What percentage of January days lie between:
a 23 and 29? b 20 and 32? c 17 and 35?
2 The marks of students sitting for a major exam are normally distributed with
and a standard deviation of 13. What percentage of marks on the exam were between:
a 44 and 70? b 31 and 83? c 18 and 96?
3 The mean thickness of bolts produced by a machine is 2.3 mm, with a standard
deviation of 0.04 mm. What percentage of bolts will have a thickness between
2.22 mm and 2.38 mm?
4 Experience has shown that the scores obtained on a commonly used IQ test can be
assumed to be normally distributed with a mean of 100 and a standard deviation of
15. What percentage of scores lie above 115?
5 The heights of young women are normally distributed with a mean = 160 cm and a
standard deviation of 8 cm. What percentage of the women would you expect to have
heights:
a between 152 and 168 cm?
b greater than 168 cm?
c less than 136 cm?
6 The age at which women give birth to their rst child is normally distributed with
years and a standard deviation of 3.2 years. From these data we can
conclude that about 95% of women have their rst child between what ages?
1. In a normal distribution:
(a) 68% of scores will have a z-score between 1 and 1
(b) 95% of scores will have a z-score between 2 and 2
(c) 99.7% of scores will have a z-score between 3 and 3.
2. The symmetry of the normal distribution allows us to make calculations about
the percentage of scores lying within certain limits.
3. If a member of a normally distributed population is chosen, it will:
(a) very probably have a z-score between 2 and 2
(b) almost certainly have a z-score between 3 and 3.
4. Any score further than three standard deviations from the mean indicates that
there may be a problem with the data set.
remember
11C
WORKED
Example
6
x 57 =
WORKED
Example
7
x
x 27.5 =
7 Fill in the blanks in the following statements. For any normal distribution:
a 68% of the values have a z-score between ___ and ___
b ___% of the values have a z-score between 2 and 2
c ___% of the values have a z-score between ___ and ___.
8
Medical tests indicate that the amount of an antibiotic needed to destroy a bacterial
infection in a patient is normally distributed with mg and a standard devi-
ation of 15 mg. The percentage of patients who would require more than 150 mg to
clear the infection is:
A 0.15% B 2.5% C 5% D 95% E 97.5%
9
The mean mark on a test is 55, with a standard deviation of 10. The percentage of
students who achieved a mark between 65 and 75 is:
A 13.5% B 22.5% C 34% D 63.5% E 95%
10 In a factory, soft drink is poured into cans such that the mean amount of soft drink is
500 mL with a standard deviation of 2 mL. Cans with less than 494 mL of soft drink
are rejected and not sold to the public. What percentage of cans are rejected?
11 The distribution of IQ scores for the inmates of a certain prison is approximately
normal with a mean of 85 and a standard deviation of 15.
a What percentage of this prison population have an IQ of 100 or higher?
b If someone with an IQ of 70 or less can be classied as mentally disabled, what
percentage of the prison population could be classied as mentally disabled?
12 The distribution of blood pressures
(systolic) among women of similar
ages is normal with a mean of 120 (mm
of mercury) and a standard deviation
of 10 (mm of mercury). Determine the
percentage of women with a systolic
blood pressure:
a between 100 and 140
b greater than 130
c between 120 and 130
d between 90 and 110
e between 110 and 150.
13 The mass of packets of chips is normally distributed with = 100 g and a standard
deviation of 2.5 g. If I purchase a packet of these chips, between what limits will the
mass of the packet:
a very probably lie? b almost certainly lie?
14 The heights of army recruits are normally distributed about a mean of 172 cm and a
standard deviation of 4.5 cm. A volunteer is chosen from the recruits. The height of
the volunteer will very probably lie between what limits?
15 A machine is set to deposit a mean of 500 g of washing powder into boxes with a
standard deviation of 10 g. When a box is checked, it is found to have a mass of
550 g. What conclusion can be drawn from this?
16 The average mass of babies is normally distributed with a mean of 3.8 kg and a standard
deviation of 0.4 kg. A newborn baby will almost certainly have a mass between what limits?
multiple choice
x 120 =
multiple choice
WORKED
Example
8
x
Digital doc:
WorkSHEET 11.1
eBookplus eBookplus
Standard normal tables
Obviously, not all z-scores lie exactly one, two or three standard deviations either side
of the mean. To deal with situations such as these, we consult a set of standard normal
tables. The tables have been computed to give the area under the curve to the left of a
particular z-value. The total area under the curve is 1. An area to the right of a
particular z-score can be calculated by subtracting the area to the left from 1. The
standard normal tables are shown on the following page.
Let us return to our rolling marble problem introduced
at the beginning of the chapter. The graph of the x-scores
is the same as the graph shown at right.
The mean rolling distance was 235 cm and the
standard deviation 26.5 cm. As z-scores, the mean
represents 0 and the standard deviation represents 1.
The question, What percentage of stopping distances
is greater than 260 cm? requires us to convert the x-score of 260 cm into a z-score.
z =
=
= 0.94
Examining a normal distribution
Complete a sample of the
heights or masses of 50 people.
1 Calculate the mean and the
standard deviation of your
sample.
2 Calculate the percentage of
people whose height or
mass has a standardised
score of between 1 and 1.
5 Compare the percentage found in 2, 3 and 4 with those you would expect if the
group of 50 people is normally distributed. Can you think of reasons why your
distribution is the same as, or different from, a normal distribution?
6 Write up your investigation, presenting your data, together with graphs. Draw
conclusions from the results of your experiment.
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235 260
x = 235
s = 26.5
x-score
x x
s
-----------
260 235
26.5
------------------------
z
We can now draw the standard normal curve in terms
of z-scores as shown at right.
This problem requires us to determine the area
under the curve to the right of the z-score, 0.94.
Consulting the standard normal tables which follow
tells us that the area under the curve to the left of a
z-score of 0.94 is 0.8264.
The area we require is the shaded area shown in
the diagram at right.
Total area under curve = 1
Area to the right of 0.94 = 1 0.8264
= 0.1736
So the answer to our question is that 0.1736 100;
that is, 17.36% of balls will have a stopping distance
greater than 260 cm.
Standard normal tables: area under the standard
normal curve
z . 00 . 01 . 02 . 03 . 04 . 05 . 06 . 07 . 08 . 09
0. 0
0. 1
0. 2
0. 3
0. 4
. 5000
. 5398
. 5793
. 6179
. 6554
. 5040
. 5438
. 5832
. 6217
. 6591
. 5080
. 5478
. 5871
. 6255
. 6628
. 5120
. 5517
. 5910
. 6293
. 6664
. 5160
. 5557
. 5948
. 6331
. 6700
. 5199
. 5596
. 5987
. 6368
. 6736
. 5239
. 5636
. 6026
. 6406
. 6772
. 5279
. 5675
. 6064
. 6443
. 6808
. 5319
. 5714
. 6103
. 6480
. 6844
. 5359
. 5753
. 6141
. 6517
. 6879
0. 5
0. 6
0. 7
0. 8
0. 9
. 6915
. 7257
. 7580
. 7881
. 8159
. 6950
. 7291
. 7611
. 7910
. 8186
. 6985
. 7324
. 7642
. 7939
. 8212
. 7019
. 7357
. 7673
. 7967
. 8238
. 7054
. 7389
. 7704
. 7995
. 8264
. 7088
. 7422
. 7734
. 8023
. 8289
. 7123
. 7454
. 7764
. 8051
. 8315
. 7157
. 7486
. 7794
. 8078
. 8340
7190
. 7517
. 7823
. 8106
. 8365
. 7224
. 7549
. 7852
. 8133
. 8389
1. 0
1. 1
1. 2
1. 3
1. 4
. 8413
. 8643
. 8849
. 9032
. 9192
. 8438
. 8665
. 8869
. 9049
. 9207
. 8461
. 8686
. 8888
. 9066
. 9222
. 8485
. 8708
. 8907
. 9082
. 9236
. 8508
. 8729
. 8925
. 9099
. 9251
. 8531
. 8749
. 8944
. 9115
. 9265
. 8554
. 8770
. 8962
. 9131
. 9279
. 8577
. 8790
. 8980
. 9147
. 9292
. 8599
. 8810
. 8997
. 9162
. 9306
. 8621
. 8830
. 9015
. 9177
. 9319
1. 5
1. 6
1. 7
1. 8
1. 9
. 9332
. 9452
. 9554
. 9641
. 9713
. 9345
. 9463
. 9564
. 9649
. 9719
. 9357
. 9474
. 9573
. 9656
. 9726
. 9370
. 9484
. 9582
. 9664
. 9732
. 9382
. 9495
. 9591
. 9671
. 9738
. 9394
. 9505
. 9599
. 9678
. 9744
. 9406
. 9515
. 9608
. 9686
. 9750
. 9418
9525
. 9616
. 9693
. 9756
. 9429
. 9535
. 9625
. 9699
. 9761
. 9441
. 9545
. 9633
. 9706
. 9767
2. 0
2. 1
2. 2
2. 3
2. 4
. 9772
. 9821
. 9861
. 9893
. 9918
. 9778
. 9826
. 9864
. 9896
. 9920
. 9783
. 9830
. 9868
. 9898
. 9922
. 9788
. 9834
. 9871
. 9901
. 9925
. 9793
. 9838
. 9875
. 9904
. 9927
. 9798
. 9842
. 9878
. 9906
. 9929
. 9803
. 9846
. 9881
. 9909
. 9931
. 9808
. 9850
. 9884
. 9911
. 9932
. 9812
. 9854
. 9887
. 9913
. 9934
. 9817
. 9857
. 9890
. 9916
. 9936
2. 5
2. 6
2. 7
2. 8
2. 9
. 9938
. 9953
. 9965
. 9974
. 9981
. 9940
. 9955
. 9966
. 9975
. 9982
. 9941
. 9956
. 9967
. 9976
. 9982
. 9943
. 9957
. 9968
. 9977
. 9983
. 9945
. 9959
. 9969
. 9977
. 9984
. 9946
. 9960
. 9970
. 9978
. 9984
. 9948
. 9961
. 9971
. 9979
. 9985
. 9949
. 9962
. 9972
. 9979
. 9985
. 9951
. 9963
. 9973
. 9980
. 9986
. 9952
. 9964
. 9974
. 9981
. 9986
3. 0
3. 1
3. 2
3. 3
3. 4
. 9987
. 9990
. 9993
. 9995
. 9997
. 9987
. 9991
. 9993
. 9995
. 9997
. 9987
. 9991
. 9994
. 9995
. 9997
. 9988
. 9991
. 9994
. 9996
. 9997
. 9988
. 9992
. 9994
. 9996
. 9997
. 9989
. 9992
. 9994
. 9996
. 9997
. 9989
. 9992
. 9994
. 9996
. 9997
. 9989
. 9992
. 9995
. 9996
. 9997
. 9990
. 9993
. 9995
. 9996
. 9997
. 9990
. 9993
. 9995
. 9997
. 9998
0 0.94
z = 0
s = 1
z-score
Standard
normal
curve
0 0.94 z-score
0.8264
(Area of
unshaded
portion)
0.1736
(Area of
shaded
portion)
eBookplus eBookplus
Tutorial:
Worked example 9
int-0429
Use the standard normal tables on page 560 to nd values for each
of the following.
a P(z < 1.5) b P(z < 0)
c P(z < 2) d P(z > 2)
e P(z < 1) f P(1 < z < 2)
THINK WRITE
a Draw a diagram and shade in the
required area.
a
Use the tables to read off
a z-value <1.5.
Write the answer showing correct
nomenclature.
P(z < 1.5) = 0.9332
b Repeat the steps in part a.
b
P(z < 0) = 0.5
c Repeat the steps in part a.
c
P(z < 2) = 0.9772
d Repeat steps 1 and 2 in part a.
d
Use complement to nd required
area.
Continued over page
1
1.5 0
z
2
3
0
z
2 0
z
1
2 0
z
2
9
WORKEDExample
THINK WRITE
Write the answer showing the
correct nomenclature.
P(z < 2) = 0.9772
P(z > 2) = 1 0.9772
P(z > 2) = 0.0228
e Draw a diagram and shade in the
required area.
e
Because the curve is symmetrical, the area
would be the same as shown below.
Use the symmetry property of the
curve.
Use the complement to nd the
required area.
P(z < 1) = 1 P(z < 1)
P(z < 1) = 1 0.8413
Write the answer showing correct
nomenclature.
P(z < 1) = 0.1587
f Draw a diagram and shade in the
required area.
f
This is equivalent to the z-score area for 1
taken from the z-score area for 2.
Consider the two z-scores separately.
3
1
1 0
z
1 0
z
2
3
4
1
1 0 2
z
0 2
z
2
THINK WRITE
Subtract the required areas. P(z < 2) = 0.9772
P(z < 1) = 0.8413
Write the answer showing the
correct nomenclature.
P(1 < z < 2) = 0.9772 0.8413
P(1 < z < 2) = 0.1359
1 0
z
3
4
For a group of students attempting an entrance examination to Fullsome University it
was found that the scores were normally distributed with a mean of 57 and a standard
deviation of 12. What is the probability that an entrant selected at random scored less
than 81? (Assume the marks vary continuously; that is, marks of 62.6 are possible.)
THINK WRITE
Dene the variables. = 57
s = 12
x = 81
Convert the x-score to a z-score. z =
=
=
= 2
Sketch the standard normal curve,
shading in the required area.
Use the tables to determine the area. P(entrant scores less than 81)
= P(x < 81)
= P(z < 2)
Write the answer using correct
nomenclature.
= 0.9772
1
x
2
x x
s
-----------
81 57
12
------------------
24
12
------
3
2 0
z
4
5
10
WORKEDExample
A normal distribution has a mean of 41 and a standard deviation of 6. If x is a value
selected at random from this distribution, calculate the following.
a P(x < 47) b P(x < 29)
THINK WRITE
a Convert the x-score to a z-score. a z =
z =
z =
z = 1
Draw the standard normal curve and
shade the required area.
Use tables to determine the area and
write using correct nomenclature.
P(x < 47) = P(z < 1)
P(x < 47) = 0.8413
b Convert the x-score to a z-score. b z =
z =
z =
z = 2
Draw the standard normal curve and
shade the required area.
Consider the negative z-score in
terms of the equivalent positive
z-score.
P(x < 29) = P(z < 2)
P(x < 29) = P(z > 2)
P(x < 29) = 1 P(z < 2)
P(x < 29) = 1 0.9772
P(x < 29) = 0.0228
1
x x
s
-----------
47 41
6
------------------
6
6
---
2
1 0
z
3
1
x x
s
-----------
29 41
6
------------------
12
6
---------
2
2 0
z
3
2 0
z
11
WORKEDExample
Standard normal tables
1 Use the standard normal tables on page 560 to nd the value of each of the following.
a P(z < 1) b P(z < 1.4) c P(z < 1.8)
d P(z > 1) e P(z < 1.7) f P(0.5 < z < 1.5)
g P(1 < z < 1) h P(2 < z < 2) i P(3 < z < 3)
j P(2 < z < 1) k P(2 < z < 3) l P(1.5 < z < 1.5)
2 If a normal distribution has a mean of 34 and a standard deviation of 4, nd z-values
for the following scores.
a x = 34 b x = 31 c x = 30 d x = 40
3 If a normal distribution has a mean of 4 and a standard deviation of 0.1, nd z-values
for the following scores.
a x = 4.05 b x = 3.95 c x = 3.87 d x = 4.12
4 If a normal distribution has a mean of 5 and a standard deviation of 1, calculate each
of the following.
a P(x < 6) b P(x < 6.6) c P(x < 5)
d P(x < 2) e P(4 < x < 5) f P(3 < x < 6)
5 If a normal distribution has a mean of 165 and a standard deviation of 14, calculate
each of the following.
a P(x < 170) b P(x < 180) c P(x < 165)
d P(x < 160) e P(160 < x < 170) f P(150 < x < 175)
g P(158 < x < 160) h P(180 < x < 184)
Note: Round z-values to 2 decimal places.
6 A machine manufactures components with a mean lifetime of 45 h with a standard
deviation of 4.5 h. If we assume that the variation in the lifetime of the components is
normally distributed, calculate the probability that a component will last at least:
a 45 h b 50 h c 53 h 30 min d 40 h.
7 The heights of the Year 12 students at Echo Beach State High School are normally
distributed with a mean of 160 cm and a standard deviation of 15 cm. What is the
probability that a students height will be:
a less than 170 cm? b less than 180 cm?
c greater than 170 cm? d between 140 cm and 170 cm?
8 Assume that the time taken for a group of 60 competitors to complete an obstacle course
was normally distributed with a mean of 26 min and a standard deviation of 6 min.
a What percentage of competitors would take less than 30 min to nish the course?
b How many of the 60 competitors would take less than 28 min to nish the course?
c How many competitors would still be going after 22 min?
1. Standard normal tables give the area under the curve to the left of a particular
z-value.
2. The total area under the curve is 1.
3. The area to the right of a z-score can be calculated by subtracting the area to
the left from 1.
remember
11D
WORKED
Example
9
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Digital doc:
SkillSHEET 11.1
Cumulative
normal
distribution table
WORKED
Example
10
WORKED
Example
11
9 A machine is designed to manufacture sheets of metal, each 24.0 cm in length. A
sample of the metal sheets shows that their lengths are normally distributed with a
mean of 24.2 cm and a standard deviation of 0.2 cm.
a What is the probability that the length of a sheet of metal is:
i less than 24.5 cm?
ii greater than 24.0 cm?
iii 24.0 cm long?
(Hint: A measure of 24.0 cm would represent the interval from 23.95 cm to
24.05 cm.)
b If sheets of metal are rejected when they are less than 24.0 cm or greater than
24.5 cm, calculate the percentage of metal sheets that are rejected.
10 The diameters of 4-year-old Woop pine trees are normally distributed with a mean of
31 cm and a standard deviation of 2.5 cm. What is the probability that one of these
a trees has a diameter which:
a is less than 33 cm? b is less than 30 cm?
c is greater than 34 cm? d is greater than 29 cm?
e lies between 30 cm and 34 cm?
11 The lifetime of Larsons Light Bulbs is normally distributed with a mean of 55 h and
a standard deviation of 3 h. The company advertises that the bulbs should last 50 h. In
what percentage of cases would you expect this claim to be false?
12 Packets of Wattos Wheat Flakes are supposed to contain 500 g of cereal. In a sample
the mean mass was 508 g with a standard deviation of 3 g. What percentage of packets
of Wattos Wheat Flakes are underweight?
(What assumption have you made in answering this question?)
Standardised scores
This investigation gives you an insight into part of the process involved in
calculating an OP (Overall Position). For each OP-eligible subject studied, each
student receives an SAI (Student Assessment Index). This index ranges from 200 to
400, the lowest student in each subject receiving a score of 200 and the top student
receiving a score of 400. The relative gaps between the students scores are an
indication of the difference in performance between the students. So that all
students can be compared, the SAIs for each subject are converted to standardised
scores (z-scores).
Consider a school that has a total of 20 Maths A students. The school has
assigned the following SAIs to their 20 students in order from top student to
bottom student (lets call them student A to Student T).
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Student A B C D E F G H I J
SAI 400 390 387 385 380 360 325 319 300 298
Student K L M N O P Q R S T
SAI 292 290 270 240 239 233 230 215 202 200
Odds
Gamblers whether at the racetrack, at the casino
or in the comfort of their living rooms think
about probability. However, they do not usually
think in terms of a probability of 1 in 5, 20% or 0.2.
Gamblers usually think in terms of odds. A prob-
ability of 1 in 5 produces odds of 4 to 1.
Odds can be thought of as a ratio of the number
of ways of losing to the number of ways of win-
ning. When a die is rolled there are 5 ways it can
come up not-6 and 1 way it can come up 6. The fair
odds against rolling a 6 are 5 to 1. Some common
odds and their probabilities are given in the table on
the next page.
Odds for events with a probability greater than are given by expressing the ratio
winning ways to losing ways as on. For example, 4:6 is written 6:4 on.
Odds
4:6
4 losing ways : 6 winning ways
10 outcomes in total
So, the probability of winning is P(winning) =
1 Enter the scores into your calculator to calculate the mean and standard
deviation of the SAI scores.
2 Convert each of the SAI scores to a z-score. Copy and complete the table
below.
3 What do you notice about the sum of the z-scores?
4 Analyse the z-scores to determine the percentage of students with a
standardised score of between 1 and 1, 2 and 2, 3 and 3. Are these scores
normally distributed? Because we have considered only a small number of
scores, you may not nd that this results in a normal distribution.
5 You may be able to obtain an actual set of SAIs from your school. If so, you
could use those gures in your investigation.
Student A B C D E F G H I J
SAI 400 390 387 385 380 360 325 319 300 298
z-score
Student K L M N O P Q R S T
SAI 292 290 270 240 239 233 230 215 202 200
z-score
1
2
---
6
10
------
In the betting arena, payouts on wins are calculated according to the following formula.
Winning payout = bet + bet returned
Odds Probability of winning
1:1 (evens)
4:1
6:4
4:6 (6:4 on)
1
2
---
1
5
---
4
10
------
6
10
------
chances of losing
chances of winning
----------------------------------------------
A gambler bets $20 on a horse at 5 to 1. If the horse wins:
a what amount does this bet win? b what return does the gambler receive?
THINK WRITE
a Odds are 5:1, so any winning bet will
win 5 times the bet.
a Amount won = bet
Amount won = $20
Amount won = $100
b The bet is also returned on a win. b Return to gambler = win + bet
Return to gambler = $100 + $20
Return to gambler = $120
chances of losing
chances of winning
----------------------------------------------
5
1
---
12
WORKEDExample
It is sometimes necesssary to convert an expression in terms of odds to one in
terms of probability and vice versa. The following worked example demonstrates
this technique.
Convert each of the following:
a odds of 3 to 1 on, to a probability b a probability of 0.16 to fair odds.
THINK WRITE
a Translate what 3 to 1 on means as
a ratio; 3 to 1 on means 1 to 3.
a 3 to 1 on means 1:3.
This is loss:win. This represents 1 chance of losing to 3 of
winning.
Find the total number of chances. So out of the 4 chances there are 3 of
winning.
Calculate P(winning). P(winning) =
b Probability of 0.16 means there is
0.16 chance of winning in 1 trial.
b P(winning) = 0.16
P(winning) =
Convert this to a ratio with
denominator 100.
P(winning) =
Calculate the chances of losing. So out of every 100 trials, there are 16
chances of winning. This means there are 84
chances of losing.
Represent the odds as losing to
winning.
So odds = losing chances:winning chances
So odds = 84:16
Simplify this ratio. So odds = 21:4
1
2
3
4
3
4
---
1
0.16
1
----------
2
16
100
---------
3
4
5
13
WORKEDExample
1. The odds represent the ratio of the number of ways of losing to the number of
ways of winning.
2. Odds for events with a probability greater than are given by expressing
winning ways : losing ways as on.
3. The winning payout is calculated as follows.
Winning payout = bet + bet returned
1
2
---
chances of losing
chances of winning
----------------------------------------------
remember
Odds
1 What amount would a punter expect to win on the following wagers?
a $35 at 3 to 1 b $70 at 6 to 4 c $78 at 11 to 2
d $120 at 5 to 2 e $45 at 3 to 1 on f $50 at 6 to 4 on
g $150 at 9 to 4 on
2 What return could the punter expect on each of the wagers in question 1?
3 Convert each of the following odds to a probability.
a 4 to 1 on b 3 to 1 c 3 to 2 on
d 5 to 2 e 7 to 3 f 2 to 1 on
4 What fair odds are equivalent to these probabilities?
a b c d e f g 0.4 h 0.45
5 What fair odds should be offered on the following events?
a Roll an even number with one die
b Roll a score of 7 with a pair of dice
c Draw a heart from a pack of 52 cards
d Draw an ace from a pack of 52 cards
e Toss 2 Heads with 2 coins
6 Calculate the odds obtained by a person who bet $50 and who collected:
a $150 b $200 c $100 d $120 e $75 f $70.
7 Many people have a bet on one particular horse, Slipper, with a bookmaker, Tom. Tom
could lose a lot of money if Slipper wins. In this situation, Tom may lay off some of
these bets. This means that Tom bets on this same horse with another bookmaker. Sup-
pose that Tom accepts bets totalling $7200 at 5 to 1, on Slipper to win.
a What could he lose if Slipper wins?
b If Tom takes $3000 of this money and bets on Slipper with another bookmaker at
9 to 2:
i what amount does Tom win if Slipper wins?
ii what are his net losses on the race if the horse wins?
8 The odds offered by a bookmaker are not static, but uctuate with the amount of money
being wagered on various horses in the eld. If large amounts are bet on a particular
horse its odds will shorten while other odds may lengthen. For this reason many
punters shop around for the best odds.
How much extra is won if $320 is invested on a winner at:
a 5 to 2 rather than 2 to 1?
b 6 to 4 on rather than 9 to 4 on?
c 11 to 4 rather than 5 to 2?
11E
Digital doc:
Spreadsheet
073 Converting odds
eBookplus eBookplus
WORKED
Example
12a
WORKED
Example
12b
WORKED
Example
13a
WORKED
Example
13b
1
3
---
1
5
---
3
5
---
2
7
---
5
12
------
2
3
---
Two-up
There are many variations of two-up played around Australia. The simplest
of these involves tossing 2 coins and betting on odds (a Head and a Tail) or
evens (2 Heads or 2 Tails).
A version commonly played in casinos has the following rules of operation:
A person, called the spinner, tosses 2 coins.
Players can bet on either HH or TT. The odds for these bets are even money.
If the spinner throws HT, he or she continues until a HH or a TT is thrown. A game
is nished when this occurs.
However, if the spinner throws HT 5 times in succession, all bets lose and the game
is nished. Thus a game must nish on or before the fth toss of the coins.
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Interactivity:
Random numbers
int-0089
What is the probability of the spinner tossing a HT then a TT?
THINK WRITE/DRAW
Draw a tree diagram showing the
outcomes of tossing two coins.
Calculate the probability of a HT and
TT.
From the tree diagram it can be seen that
P(HT) =
=
P(TT) =
Find the probability of one outcome
followed by the other.
Since the two tosses are independent of each
other
P(HT then TT) = P(HT) P(TT)
P(HT then TT) =
P(HT then TT) =
1 Coin 1 Coin 2
H
H
Outcomes
HH
T HT
T
H TH
T TT
2
2
4
---
1
2
---
1
4
---
3
2
4
---
1
4
---
1
8
---
14
WORKEDExample
Two-up
Answer the following questions for the game of two-up.
1 What is the probability of tossing
HH?
TT?
TH or HT?
4 What is the probability that the
game nishes on the rst toss?
5 The game can nish on the second
toss through the following
sequence.
What is the probability of this out-
come?
6 The game can nish on the third toss through the following sequence.
What is the probability of this outcome?
7 If the game is undecided after the 4th toss:
a what sequence has occurred?
b what is the probability of this outcome?
8 What is the probability that the bank will take all bets?
9 If one bets on TT, what is the probability of:
a winning on the 2nd toss?
b winning on the 3rd toss?
c winning on the 4th toss?
d winning on the 5th toss?
e winning overall?
10 The odds offered for betting on TT are even money. Are these odds fair?
Throw 1
HT
Throw 2
HH
Throw 1
HT
Throw 2
HT
Throw 3
HH
1. The game of two-up involves tossing two coins. The rules of probability apply
to the outcomes.
2. Players can bet on either HH or TT. If a HT is thrown, tosses continue until a
HH or a TT results.
3. If 5 successive tosses result in HT, all bets lose and the game is nished.
remember
11F
WORKED
Example
14
Digital docs:
Spreadsheets
069 Simulating coin
tosses DIY
067 Coin toss lister
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Roulette
Roulette is a game of chance in which a
ball is placed into a spinning wheel that has
numbered slots. Gamblers eagerly await the
nal resting place of the ball to see whether
they have won or lost. There are 37 slots on
the roulette wheel numbered from 0 to 36,
and by placing your chips strategically on
the table there are many ways to bet on the
outcome. If the ball lands on 0, the bank
takes all money (except for those bets that
are straight up on 0 see below).
The diagram below shows where to place
your bet and at what odds you can win.
A A straight up on any single number
(including 0). Odds 36 to 1.
B A split covers any one of two
numbers. Odds 17 to 1.
C A street covers any one of three
numbers. Odds 11 to 1.
D A corner covers any one of four numbers. Odds 8 to 1.
E A six line covers any one of 6 numbers. Odds 5 to 1.
F A column covers any of the 3 vertical columns. Odds 2 to 1.
G A dozen covers any of the series of twelve. Odds 2 to 1.
H The even chances. Odds even money.
I Cover 0, 1, 2 and 3. Odds 8 to 1.
A
3
2
1
6
5
4
9
8
7
1
2
1
1
1
0
1
5
1
4
1
3
1
8
1
7
1
6
2
1
2
0
1
9
2
4
2
3
2
2
2
7
2
6
2
5
3
0
2
9
2
8
3
3
3
2
3
1
3
6
3
5
3
4
2

t
o

1
2

t
o

1
2

t
o

1
1-18 EVEN ODD 19-36
2ND 12 1ST 12 3RD 12
RED BLACK
0
B C D E F
I
H H H H H H G G G
1. In the game of roulette, a ball is placed into a wheel with 37 numbered slots
(0 to 36).
2. Many betting options are available to the gambler.
remember
Roulette
1 What is the probability that the ball will land in:
a an even number? b a six line?
2 a, b Calculate the fair odds for the events in question 1.
c Are the odds offered by the casino fair in the mathematical sense? In a short para-
graph write a justication of the fairness of these odds from the casinos point of
view.
3 What amount would a punter win or lose (in total) on each of these rolls of the wheel if
the following wagers were made?
a $20 on red and $10 on the 20-21-23-24 corner. The winner was black 24.
b $10 on 12 and $20 on odd and $10 on black. The winner was red 25.
c $20 on 1st 12 and $20 on the 13-14-15 street. The winner was black 15.
d $50 on red and $50 on even and $5 on 0. The winner was 0.
4 If a roulette player bets $20 on the black and $20 on the red, what is going to happen
most of the time? What is the problem with this strategy?
A gambling system where you always win!
This system can be applied to many different forms of gambling. To illustrate it in
a simple context we choose roulette. The probability that an odd number comes up
is . It pays odds of even money, or 1 to 1. The system operates in this fashion.
Bet $5 on an odd number.
If it wins, take the $5 and leave Result: Win $5
If it loses, then:
bet $10 on an odd number.
If it loses, then:
If it loses, then:
If it loses, then:
. . . and so on.
In theory, an odd number will come up sooner or later and when it does you will
win $5. Thus in theory this system can never lose.
If you have a roulette wheel play this system and see if it works. If you dont
have a roulette wheel you can devise a system using the random number generator
on a calculator or spreadsheet to model the situation. Alternatively, you could use a
pack of cards.
The fundamental question is to determine the aw in this method. If it works all
the time wouldnt the casinos be bankrupt?
11G
Digital docs:
Spreadsheet
203 Simulating
random numbers
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Common fallacies in probability
A misunderstanding of the nature of independence leads to numerous fallacies in prob-
ability. If a coin has just come up Heads 5 times in a row people feel strongly that in
the next throw it will come up Tails; or if a roulette wheel has landed on 20 then it has
a smaller chance of landing on 20 the next time around. Clearly, however, each of these
events has just as good a chance of occurring as any other. The coin and the roulette
wheel have no capacity for remembering what happened last time and so operate
independently of previous outcomes.
If two events A and B are independent, then their probabilities are multiplied.
P(A and B) = P(A) P(B)
The probability that a person has black hair is .
The probability that a person has a black moustache is .
What is the probability that a person has black hair and a black moustache?
THINK WRITE
These are independent events so
multiply the probabilities.
P(black hair and black moustache)
= P(black hair) P(black moustache)
=
=
Interpret your answer. Are these events
really independent?
These two events are biologically linked so
cannot be multiplied.
The events are not independent so this answer
is not correct.
1
4
---
1
4
---
1
1
4
---
1
4
---
1
16
------
2
15
WORKEDExample
1. When two or more events are independent, the outcome of each event has no
effect on the outcome of the others.
2. On each toss of a fair coin, a Head has the same chance of occurring as a Tail.
If a Tail has resulted each time in four tosses of the coin, the chance of a Tail
occurring on the fth toss is still fty-fty.
3. A common fallacy in games of chance is that if one particular outcome has
occurred repeatedly in a number of trials, then it is less likely to occur in the
next trial.
remember
Common fallacies in
probability
1 A coin is tossed. What is the probability of:
a getting 4 Heads in a row?
b getting 5 Heads in a row?
c getting 1 more Head if you have just thrown 4 in a row?
2 a Juanita is at the State tennis championships and she estimates that she has a
0.75 chance of winning each match that she has to play. What is the probability that
she wins:
ii 4 matches in a row?
ii 5 matches in a row?
b She wins her rst 4 matches and her coach says to her, You cant keep winning like
this. The chance of winning 5 in a row is 0.24, so your chances of winning the
5th match are not good. How should Juanita reply to this lack of condence?
3 Lightning never strikes the same place twice. This old saying is yet another example
of misunderstanding independence in probability. Can you think of any other
examples?
4 Shane was attempting a question in prob-
ability. The question was:
In Runaway Bay the population is 18 000
and of these people, 3200 are aged 12 to
18 years. In the town there are 1900 people
who own a surfboard. What is the prob-
ability that a person selected at random in
Runaway Bay is aged 12 to 18 and owns a
surfboard?
Shanes solution was:
P(12 age 18) = = 0.18
P(own surfboard) = = 0.11
Thus
P(own surfboard and 12 age 18)
= 0.18 0.11
= 0.02
a What is the error in Shanes thinking?
b What extra information would you need
before the problem can be solved?
11H
WORKED
Example
15
3200
18 000
----------------
1900
18 000
------------------
Mathematical expectation
A die is rolled for a large number of times and
the number on the uppermost face is noted.
What value could be expected for the average of
these numbers? A little common sense would
suggest that the average would be
(1 + 2 + 3 + 4 + 5 + 6) 6 = 3.5.
Now suppose the die was biased as shown in
the table at right.
If this die were to be rolled a large number of
times, what average could be expected?
In this case the expected value would be
1 0.1 + 2 0.1 + 3 0.2 + 4 0.2 + 5 0.2 +
6 0.2 = 3.6
In general, if an experiment has outcomes a, b, c,
. . . k then the average of the outcomes is expected to be
expected value = a P(a) + b P(b) + . . . + k P(k)
A variation on the idea of expected value is the expected loss or
gain of a wager. To calculate the expected loss or gain of a wager all
possible outcomes are listed. A loss is counted as a negative gain as seen in
the following example.
Event (X) P(X)
1
2
3
4
5
6
0.1
0.1
0.2
0.2
0.2
0.2
A lottery sells 1200 tickets at $5 each and offers prize money of $4500. What is the
expected gain or loss by a person who buys one ticket?
THINK WRITE
Calculate the gain P(gain) for a win.
Calculate the gain P(gain) for a loss.
Note: This will be a negative value.
Add these two to give overall gain a
negative sign is seen as a loss.
Expected gain = + 5
Expected gain =
Expected gain = 1.25
A loss of $1.25.
1
2
Outcome Gain Probability Gain P
Ticket wins $4500
Ticket loses $5
5
1
1200
------------
4500
1200
------------
1199
1200
------------
1199
1200
------------
3
4500
1200
------------
1199
1200
------------
1495
1200
------------
16
WORKEDExample
1 A die is biased as shown in the table at right.
What average would you expect for a large
number of rolls of this die?
2 A die is biased as shown in the table at right.
What is the expected value for a roll of
this die?
3 A group of people attended a showing of
Rocky 25. The distribution of their ages
is shown in the table at right.
If a person is selected at random from this
group, what is the expected value of his or
her age?
If an event has numerical outcomes a, b, c, k, then the expected outcome, or the
average outcome, for this event will be:
a P(a) + b P(b) + c P(c) + + k P(k).
remember
11I
Number Probability
1
2
3
4
5
6
0.2
0.1
0.1
0.2
0.3
0.1
Number Probability
1
2
3
4
5
6
0.2
0.2
0.2
0.2
0.1
0.1
Age Proportion (%)
14
15
16
17
18
18
26
40
11
5
4 A lottery sells 5000 tickets at $2 each. If a rst prize of $8000 is offered, what is the
expected loss or gain for buying this ticket?
5 The following bet is suggested to you:
Roll the die (6-sided) and if it:
1. shows an even number, you get $10
2. shows a 5, you pay $30
3. shows a 3, you pay $15
4. shows a 1, nothing happens.
What is the expected loss or gain for this wager?
6 In my pocket I have 5 coins: a $2 coin, a 50c coin and three 20c coins. If I take one
coin from my pocket, what is the mathematical expectation of a random selection?
7 On a roulette wheel there are 37 numbers: 0 to 36. If a 0 turns up you lose. If you bet
$5 on the odd numbers you receive $10. What is the expected return on the $5 bet?
8 If you are given one of 250 tickets in a rafe which has a prize of $400,
what is the value of this ticket?
9 What is the expected value for the sum of the uppermost faces when a pair of dice are
rolled?
1 Is it very probable or almost certain that a member of a population will lie
within a z-score range of 2 to +2?
2 In a test where the mean was 62% and the standard deviation 12%, what
percentage of the candidates scored above 86%?
3 A machine lls 1-litre drink bottles. The standard deviation of the machine is
10 mL. What is the least volume acceptable in the bottle?
4 Use the standard normal tables (on page 560) to determine P(z < 1.65).
5 Hence determine P(z > 1.65).
6 What is P(z < 1.65)?
7 Calculate P(1.65 < z < 1.65).
8 If the odds are 3:2, what is the probability of winning?
9 If I placed a $100 bet on a horse at 4:1, how much would I receive if the horse
wins?
10 At a school fete there are 1000 $2-tickets in a rafe with a prize money of $1000.
What is the expected gain or loss by a person who buys one ticket?
WORKED
Example
16
Digital doc:
WorkSHEET 11.2
eBookplus eBookplus
2
Keno
Keno is a popular game in the large clubs around Australia. In one version of the game,
each round a machine randomly generates 15 numbers from 1 to 50. In one entry you
can select 1 or 2 or up to 15 numbers. The return on a bet is given in the table below.
Analyse the returns given for each of the bets. How are the odds calculated? Are
they fair? If you select 15 numbers, the payout for getting 0 right is larger than the
payout for getting 1 right. Why is this?
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tiga
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t i g a
t
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1. Minimum jackpot: $5000 2. Minimum jackpot: $20 000 3. Minimum jackpot: $1 000 000
Keno prizes example
Numbers
selected
Numbers
matched
$1
bet
$2
bet
$5
bet
Numbers
selected
Numbers
matched
$1
bet
$2
bet
$5
bet
1 MATCH 1 3 6 15
12
MATCH
0 4 8 20
2 MATCH 2 12 24 60 1 1 2 5
3 MATCH
2 1 2 5 5 1 2 5
3 43 86 215 6 4 8 20
4 MATCH
2 1 2 5 7 15 30 75
3 4 8 20 8 80 160 400
4 112 224 560 9 600 1 200 3 000
5 MATCH
3 2 4 10 10 7 600 15 200 38 000
4 14 28 70 11 56 000 112 000 250 000
5 610 1 220 3 050 12 160 000 250 000 250 000
6 MATCH
3 1 2 5
13
MATCH
0 5 10 25
4 5 10 25 1 1 2 5
5 85 170 425 5 1 2 5
6 1 500 3 000 7 500 6 2 4 10
7 MATCH
3 1 2 5 7 8 16 40
4 2 4 10 8 45 90 225
5 14 28 70 9 350 700 1 750
6 147 294 735 10 2 000 4 000 10 000
7
JACKPOT
1
JACKPOT
1
JACKPOT
1
11 9 000 18 000 45 000
8
MATCH
4 2 4 10 12 80 000 160 000 250 000
5 7 14 35 13 190 000 250 000 250 000
6 50 100 250
14
MATCH
0 7 14 35
7 835 1 670 4 175 1 1 2 5
8
JACKPOT
2
JACKPOT
2
JACKPOT
2
6 1 2 5
9
MATCH
4 1 2 5 7 7 14 35
5 5 10 25 8 35 70 175
6 30 60 150 9 220 440 1 100
7 220 440 1 100 10 1 000 2 000 5 000
8 3 500 7 000 17 500 11 8 500 17 000 42 500
9 50 000 100 000 250 000 12 25 000 50 000 125 000
10
MATCH
5 2 4 10 13 100 000 200 000 250 000
6 10 20 50 14 225 000 250 000 250 000
7 80 160 400
15
MATCH
0 15 30 75
8 820 1 640 4 100 1 2 4 10
9 10 000 20 000 50 000 6 1 2 5
10
JACKPOT
3
JACKPOT
3
JACKPOT
3
7 5 10 25
11
MATCH
0 3 6 15 8 15 30 75
1 1 2 5 9 50 100 250
5 1 2 5 10 330 660 1 650
6 5 10 25 11 2 600 5 200 13 000
7 35 70 175 12 20 000 40 000 100 000
8 220 440 1 100 13 60 000 120 000 250 000
9 2 500 5 000 12 500 14 110 000 220 000 250 000
10 22 000 44 000 110 000 15 250 000 250 000 250 000
11 130 000 250 000 250 000
Rock, paper, scissors
The game Rock, paper, scissors is played all over the world,
not just for fun but also as a way of settling a disagreement.
The game uses the three different hand signs shown left and right.
Simultaneously, two players pound the st of one hand into the
air three times. On the third time each player displays one of the
hand signs. Possible results are shown below.
1 Play 20 rounds of Rock, paper, scissors with a partner. After each round, record
each players choice and the result in a table like the one shown below.
(Use R for rock, P for paper and S for scissors.)
2 Based on the results of your 20 rounds, what is the experimental probability of:
a you winning? b your partner winning? c a tie?
3 Do you think playing Rock, paper, scissors is a fair way to settle a
disagreement? Explain.
Two person, zero sum is an adaptation of this game with only two optional hand
shapes; Paper, P, or Scissors, S. Through the toss of a coin, players decide who will
be A and who will be B.
Players win or lose according to these rules:
Player A makes scissors and player B makes paper: Player A loses $5 and player B
gains $5
Player A makes paper and player B makes scissors: Player A loses $3 and player B
gains $3
Both players make paper: Player A gains $5 and player B loses $5
Both players make scissors: Player A gains $3 and player B loses $3.
Players start with $100 and the winner of this game is the leader after 30 rounds.
4 Record the results after 30 rounds in a table.
5 What would happen if this game is complicated by introducing some
predictability into one of the contestants actions?
Suppose player A chooses between paper and scissors randomly but with a
0.6 bias in favour of paper. Now player A uses the random number generator on
a calculator to choose between scissors and paper. If the rst digit of the
random number is 0 to 5, choose paper; otherwise choose scissors.
6 Is there a strategy which can now be adopted to maximise the chances of player
B winning?
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Rock breaks scissors
Rock wins
Scissors cut paper
Scissors win
Paper covers rock
Paper wins
Round number Player 1 Player 2 Result
1 P R Player 1 wins
2 S R Player 2 wins
3 S S Tie
Rock
Scissors
Paper
z-scores
A data set is normally distributed if it is symmetrical
about the mean.
A z-score measures the position of a score relative to the
mean and standard deviation.
A z-score is found using the formula , where x = the score, = the mean
and s = the standard deviation.
Standardising both scores best compares scores from different data sets.
When comparing exam marks, the highest z-score is the best result.
A data set that is normally distributed will be symmetrical about the mean.
68% of scores will have a z-score of between 1 and 1.
95% of scores will have a z-score between 2 and 2. A score chosen from this data
set will very probably lie in this range.
99.7% of scores will have a z-score of between 3 and 3. A score chosen from the
data set will almost certainly lie within this range.
Normal distribution
The normal distribution is used to describe quantities such as test scores, physical
characteristics such as height and the distribution of errors.
The standard normal curve has a mean of 0 and a standard deviation of 1.
The normal variable x can be scaled to a z-score on the standard normal curve by
the formula
.
Odds
If an outcome has p ways of success and q ways of failure, then the odds against the
event occurring are q to p. If an event has a probability of of occurring, then the
fair odds offered for this event are 5 to 1.
Casino games
The techniques in probability that have been developed can be used to analyse a
number of casino games.
Two-up is played by tossing 2 coins and noting the results. If the spinner tosses HH
3 times in a row before tossing TT, he or she wins at odds of 7.5 to 1. All players
lose if the spinner tosses TH 5 times in a row.
Roulette offers the gambler a large variety of betting opportunities as the ball rolls
around the 37 black and red numbers.
Keno is a popular game in the large clubs around Australia. In each round a
machine randomly generates 15 numbers from 1 to 50. In one entry you can select
1 or 2 or up to 15 numbers.
If an event has numerical outcomes, a, b, c, . . . k, then the expected outcome, or the
average outcome, for this event will be:
a P(a) + b P(b) + c P(c) + . . . + k P(k).
summary
z
x x
s
----------- = x
z
x x
s
----------- =
1
6
---
x
1 Measurements of the amount of acid in a certain chemical are made. The results are
normally distributed such that the mean is 6.25% and the standard deviation is 0.25%.
Harlan gets a reading of 5.75%. What is Harlans reading as a z-score?
2 A set of scores is normally distributed such that the mean is 15.3 and the standard deviation
5.2. Convert each of the following members of the distribution to z-scores.
a 15.3 b 20.5 c 4.9 d 30.9 e 10.1
3 On an exam the results are normally distributed with a mean of 58 and a standard deviation
of 7.5. Jennifer scored a mark of 72 on the exam. Convert Jennifers mark to a z-score,
giving your answer correct to 2 decimal places.
4 A set of scores is normally distributed with a mean of 2.8 and a standard deviation of 0.6.
Convert each of the following members of the data set to z-scores, correct to 2 decimal
places.
a 2.9 b 3.9 c 1 d 1.75 e 1.6
5 The table at right shows the length of time
for which a sample of 100 light bulbs will
burn.
a Find the mean and standard deviation
for the data set.
b A further sample of ve light bulbs are
chosen. The length of time for which
each light bulb burnt is given below.
Convert each of the following to a
standardised score.
i 1000 hours ii 1814 hours iii 256 hours iv 751 hours v 2156 hours
6 Anji conducts a survey on the
water temperature at her local
beach each day for a month.
The results (in C) are shown below.
20 21 19 22 21 18 17
23 17 16 22 20 20 20
21 20 21 18 22 17 16
20 20 22 19 21 22 23
24 20
a Find the mean and standard
deviation of the scores.
b Find the highest and lowest
temperatures in the data set
and express each as a z-score.
11A
CHAPTER
review
11A
11A
11A
11A Length
of time
(hours)
Class
centre Frequency
0<500 3
500<1000 28
1000<1500 59
1500<2000 10
11A
7 Betty sat examinations in both Physics and Chemistry. In
Physics the examination results showed a mean of 48 and a
standard deviation of 12, while in Chemistry the mean was 62
with a standard deviation of 9.
a Betty scored 66 in Physics. Convert this result to a z-score.
b Betty scored 71 in Chemistry. Convert this result to a
z-score.
c In which subject did Betty achieve the better result? Explain
your answer.
8 In Geography, Carlos scored a mark of 56 while in Business Studies
he scored 58. In Geography = 64 with a standard deviation of 10. For
Business Studies = 66 with a standard deviation of 15.
a Convert each mark to a standardised score.
b In which subject did Carlos achieve the better result?
9 A psychologist records the number of errors made on a series of tests. On a
literacy test the mean number of errors is 15.2 and the standard deviation is 4.3. On the
numeracy test the mean number of errors is 11.7 with a standard deviation of 3.1. Barry
does both tests and makes 11 errors on the literacy test and 8 errors on the numeracy test. In
which test did Barry do better? Explain your answer.
10 A data set is normally distributed with a mean of 40 and a standard deviation of 8. What
percentage of scores will lie in the range:
a 32 to 48? b 24 to 56? c 16 to 64?
11 The value of sales made on weekdays at a take-away store appears to be normally
distributed with a mean of $1560 and a standard deviation of $115. On what percentage of
days will the days sales lie between:
a $1445 and $1675? b $1330 and $1790? c $1215 and $1905?
12 A data set is normally distributed with a mean of 56 and a standard deviation of 8. What
percentage of scores will:
a lie between 56 and 64? b lie between 40 and 56? c be less than 40?
d be greater than 80? e lie between 40 and 80?
13 A machine is set to produce bolts with a mean diameter of 5 mm with a standard deviation
of 0.1 mm. A bolt is chosen and it is found to have a diameter of 4.5 mm. What conclusion
can be drawn about the settings of the machine?
14 Use the normal tables on page 560 to nd the value of:
a P(z < 1.3) b P(z < 2.4) c P(z > 1)
d P(z < 1.5) e P(0.6 < z < 1.5).
15 If a normal distribution has a mean of 45 and a standard deviation of 6, nd z-values for the
following scores.
a x = 45 b x = 51 c x = 40 d x = 77
16 If a normal distribution has a mean of 25 and a standard deviation of 3, calculate:
a P(x < 25) b P(x < 28) c P(x < 22)
d P(x < 20) e P(24 < x < 25) f P(23 < x < 26).
17 A machine manufactures components with a mean mass of 215 grams and a standard
deviation of 8 grams. If we assume that the variation in the mass of the components is
normally distributed, calculate the probability that a component will have a mass:
a less than 215 grams b less than 223 grams
c more than 210 grams d between 220 and 230 grams.
11B
11B
x
x
11B
11C
11C
11C
11C
11D
11D
11D
11D
18 A bookmaker takes the following bets on two separate races. Which horses, if they win, will
result in a loss for the bookmaker?
a b
19 The casino offers odds of 7.5 to 1 if the spinner can toss HH 3 times in a row before tossing
TT or TH 5 times in a row. Are these fair odds? Answer this question by simulation; that is,
toss 2 coins many times and record the number of wins and losses.
20 Which of the following is better in a roulette game?
a Place $5 on each even number (except 0) or place $90 on evens.
b Place $5 on each of the numbers 20, 21, 23 and 24 or place $20 on the corner
20-21-23-24.
21 At Rockaway College there are 435 girls and 450 boys. The schools policy is that only girls
can play netball and in fact 221 girls play netball.
a What is the probability that a student selected at random:
iii is a girl?
iii plays netball?
iii is a girl who plays netball?
b Are the events P(girl) and P(plays netball) independent?
22 A game is played where you win $10 for rolling a double using 2 dice.
a What is the expected value of your winnings?
b How much would you expect to pay, per throw, to play this game, if the operator of the
game wanted to make a 20% prot (calculated on total bets placed) in the long run?
11E
Horse Odds Bets
1
2
3
4
5
6
8 to 1
14 to 1
6 to 4 on
evens
8 to 1
25 to 1
$280
$175
$1250
$870
$420
$250
Horse Odds Bets
1
2
3
4
5
6
15 to 1
40 to 1
6 to 4 on
evens
15 to 1
2 to 1
$780
$275
$4250
$670
$820
$2250
11F
11G
11H
Digital doc:
Test Yourself
Chapter 11
eBookplus eBookplus
11I
Digital docs
Spreadsheet 081: Investigate nding the mode
(page 540)
Spreadsheet 082: Investigate nding the mode
DIY (page 540)
Spreadsheet 079: Investigate nding the median
(page 540)
Spreadsheet 080: Investigate nding the median
DIY (page 540)
Spreadsheet 072: Investigate nding bar graphs
DIY (page 540)
Spreadsheet 074: Investigate histograms and
frequency polygons (page 541)
Spreadsheet 075: Investigate histograms and
frequency polygons DIY (page 541)
Spreadsheet 007: Investigate calculating the mean
from a frequency table (page 546)
Spreadsheet 078: Investigate calculating the mean
from a frequency table DIY (page 546)
Digital doc
WorkSHEET 11.1: Use the 68%, 95% and 99.7%
rules to make calculation for normal distributions
(page 558)
Interactivity
Normal distributions int-0182: Consolidate your
understanding of normal distributions (page 552)
Digital doc
SkillSHEET 11.1: Practise using the cumulative
normal distribution table (page 565)
Tutorial
Int-0429: Watch how to determine probabilities
for a normal distribution (page 561)
Digital doc
Spreadsheet 073: Investigate converting odds
(page 570)
Digital docs
Spreadsheet 069: Investigate simulating coin tosses
DIY (page 572)
Spreadsheet 067: Investigate the coin toss lister
(page 572)
Interactivity
Random numbers int-0089: Consolidate your
understanding of random number generation
(page 571)
Digital doc
Spreadsheet 203: Investigate simulating random
numbers (page 574)
Digital doc
WorkSHEET 11.2: Calculate probabilities for
normal distributions, expected values and game
probabilities (page 579)
Digital doc
your progress. (page 585)
11A z-scores
11C Distribution of scores
11D Standard normal tables
WE9
11E Odds
11F Two-up
11G Roulette
11I Mathematical expectation
Chapter review
www.jacplus.com.au
A p p e n d i x

587

Instructions for the TI-89 Titanium graphics calculator

Chapter 1 Simple and compound interest

Graphics Calculator tip: Calculating simple interest and amount (page 6)................ 589
Graphics Calculator tip: Simple interest (page 8)....................................................... 590
Worked example 4 (page 13)....................................................................................... 591
Graphics Calculator tip: Comparing investments (page 25) ....................................... 594
Worked example 11 (page 29)..................................................................................... 595
Investigation: Doubling your money (page 38) .......................................................... 599
Investigation: Comparing simple and compound interest functions using graphics
calculators (page 41) ............................................................................................... 600
Graphics Calculator tip: Calculating effective interest rates (page 48) ...................... 602

Chapter 2 Appreciation and depreciation

Investigation: Modelling appreciation with the aid of a graphics
calculator (page 60)................................................................................................. 603

Chapter 3 Consumer credit and investments

Investigation: Loan repayments (page 130) ................................................................ 610
Graphics Calculator tip: Calculating the number of days between
dates (page 144) ...................................................................................................... 613

Chapter 4 Exploring and understanding data

Worked example 11 (page 209)................................................................................... 614
Investigation: Interpreting histograms (page 217) ...................................................... 615
Worked example 13 (page 220)................................................................................... 616
588

A p p e n d i x

Chapter 7 Linear programming

Graphics Calculator tip: Graphing linear inequations (page 384).............................. 617
Graphics Calculator tip: Solving simultaneous linear equations (page 388) ............. 618
Graphics Calculator tip: Solutions to simultaneous linear inequations (page 394) ... 619

Chapter 10 Probability and the binomial distribution

Graphics Calculator tip: Calculating binomial probabilities (page 519) ................... 620

Chapter 11 The normal distribution and games of chance

Graphics Calculator tip: Distribution of scores (page 554) ....................................... 621

Note:

This set of graphics calculator tips for the TI-89 Titanium uses the CellSheet
application. If this application has not already been downloaded to your calculator, use
the

TI-89 Titanium

weblink in your eBookPLUS and follow the instructions.
A p p e n d i x

589

Chapter 1 page 6

A graphics calculator can be used to solve Worked example 1.
1. Press:
HOME
CATALOG.
Scroll down to choose the solve command and
solve .
Then press .
2.

A

=

P

+

I

= 12 000 + 5700
= $17 700
Verify the answers in part

b

of Worked example 1
using your calculator.
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating simple interest and
amount
i
12 000 9.5 5
100
--------------------------------------- i , =

ENTER
590

A p p e n d i x

Chapter 1 page 8

The following instructions can be used for Worked example 2.
1. Press:
HOME
CATALOG.
Scroll down to select the solve command. Complete
the entry line as:
solve

p

=

18 000 and r

=

7.75
and t

=

0.5.
Then press .

Note:

The word and can be entered by using
and the letter keys or selecting and from
the CATALOG menu.
2. To obtain the answer to part

b

, use the arrow keys to
highlight the previous equation and paste it into the
entry line. Use the arrow keys to edit the equation as
shown.
solve

p

=

18 000 and r

=

7.75
and t

=

5
Then press .
Graphics Calculator
Graphics Calculator
tip!
tip!
Simple interest
i
p r t
100
------------------- i , =

ENTER
ALPHA
i
p r t
100
------------------- i , =

ENTER
A p p e n d i x

591

Chapter 1 page 13
THINK WRITE/DISPLAY
Press:
HOME
CATALOG.
Then scroll down to choose the solve
command.
solve
i = 205.2 and
p = 720 and t = .
Then press .
Write your answer. Solve , for R, given I = 205.20,
P = 720 and T = .
The interest rate offered was 9.5% per annum.
1
i
p r t
100
------------------- r , =

36
12
------
ENTER
2 I
P R T
100
----------------------- =
36
12
------ 3 =
4
WORKEDExample
592

A p p e n d i x

Chapter 1 page 14
THINK WRITE
Press:
HOME
CATALOG.
Then scroll down to choose the solve
command.
solve
i = 86.7 and
p = 255 and r = 8.5.
Then press .
Write your answer. Solve , for T,
given I = 205.20, P = 720 and R = 8.5.
The period of the investment was 4 years.
1
i
p r t
100
------------------- t , =

ENTER
2 I
P R T
100
----------------------- =
5
WORKEDExample
A p p e n d i x

593

Chapter 1 page 19
Use a graphics calculator to answer the question in Worked example 7.
THINK WRITE/DISPLAY
a To enter the data in a CellSheet, press .
Select CellSheet and press:
3: (New)
.
Enter the values 1 to 5 in column A. These
values represent years.
In column B move the cursor to cell B1. Press:
(Edit)
3: (Fill Range).
Complete the table as:
Initial formula: = 12 000 4 a1 100
Range: B1: B5.
Then press .
a
In column C the interest rate becomes 5%.
Repeat the above steps completing the table as:
Range: C1: C5.
Then press .
In column D the interest rate becomes 6%.
Again repeat these steps completing the table as:
Range: D1: D5.
Then press .
b To show this information in graph form, press:
[GRAPH].
To set appropriate window settings for the
graph, press [WINDOW].
b
Press [Y=] and enter the following
functions:
y1(x) = 12 000 4 x 100
y2(x) = 12 000 5 x 100
y3(x) = 12 000 6 x 100.
Press [GRAPH] to graph the functions.
1 APPS
ENTER
F3
ENTER
2
ENTER
ENTER
1
APPS
8
WORKEDExample
594 A p p e n d i x
Chapter 1 page 25
The data found on page 25 may be entered into a graphics calculator and used to plot
each of the graphs.
1. To enter the data in a CellSheet, press .
Select CellSheet and press:
3: (New)
.
In column A enter the years, in column B enter the
simple interest and in column C enter the compound
interest.
2. To adjust the window settings, press [WINDOW]
and enter the settings shown.
3. Return to the CellSheet and press
(Plots). Enter the settings shown.
4. To draw the graph of the function, press
[GRAPH].
5. Return to the CellSheet to draw the second scatter
plot. Press:
(Plot)
1: (Plot Setup).
Use the arrow keys to move to Plot 2 and press
(Dene). Enter the settings shown.
6. To draw both scatterplots, press [GRAPH]. Press
(Trace) to explore the points on the graph.
Graphics Calculator
Graphics Calculator
tip!
tip!
Comparing investments
APPS
ENTER
F2
F2
F1
F3
A p p e n d i x 595
Chapter 1 page 29
THINK WRITE/DISPLAY
Enter the following data in the Finance application on
the TI-89 Titanium graphics calculator.
PV = 12 000 (Present value is $12 000.)
C/ Y or CpY = 1 (Interest is calculated once a year.)
Use the arrow keys to move to the FV line and
press .
Write the answer.
Future value is $16 830.60.
1
2
ENTER
3
11
WORKEDExample
596 A p p e n d i x
Chapter 1 page 30
THINK WRITE/DISPLAY
Enter the following data:
PV = 6000 (Present value is $6000.)
C/Y or CpY = 4 (Interest is calculated 4 times a year.)
Use the arrow keys to move to FV line and
press .
Write the answer.
Future value would be $7030.
1
2
ENTER
3
12
WORKEDExample
A p p e n d i x 597
Chapter 1 page 37
THINK WRITE/DISPLAY
a To enter the data in a CellSheet press and
select CellSheet. Press:
3: (New)
.
Enter the values 0 to 5 in column A to
represent the years.
Move the cursor to cell B1 and press:
(Edit)
3: (Fill Range).
Initial Formula: = 2000(1 + 5 100) ^ a1
Range: B1: B6.
Then press ENTER.
a
Repeat the steps for column C, completing the table as:
Range: C1: C6.
Then press .
Again repeat these steps for column D, completing
the table as:
Range: D1: D6.
Then press .
To adjust the window settings, press
[WINDOW] and enter the settings shown.
Return to the CellSheet, press (Plots) and enter
the settings shown to graph the rst series.
1 APPS
ENTER
F3
2
ENTER
ENTER
3
4 F2
16
WORKEDExample
598 A p p e n d i x
THINK WRITE/DISPLAY
b To draw the graph of the function
press [GRAPH].
b
To draw the second scatter plot, return to the
CellSheet. Press:
(Plot)
1: (Plot Setup).
Use the arrow keys to move to Plot 2
and press (Dene). Enter the
settings shown.
Return to the CellSheet to draw the second
scatter plot. Press:
(Plot)
1: (Plot Setup).
Use the arrow keys to move to Plot 3
and press (Dene). Enter the
settings shown.
To draw all three scatterplots together press
[GRAPH]. To explore points on the
graph press (Trace).
1
2
F2
F1
3
F2
F1
4
F3
A p p e n d i x 599
Chapter 1 page 38
Doubling your money
Task 3
1 We can use a graphics calculator to determine the time required for a sum of
money to double in value.
Lets consider our original investment of $10 000 at 10% p.a. compounding monthly.
The formula is:
.
Where:
A = 20 000
P = 10 000
R = 10
n = 12.
To nd T, complete the entry line as:
solve .
Then press .
The time taken to double the value of the investment is 84 months (7 years).
A P 1
R
100 n
------------------ +

=
n T
10 000 1
10
1200
------------ +

x
20 000 x , =

ENTER
600 A p p e n d i x
Chapter 1 page 41
interest functions using graphics
calculators
Task 1
Your grandfather left you $20 000 in his will. You have no need to use the money
at this stage, so you are looking at investing it for approximately 12 years. Your
research has narrowed down your options to 4.25% p.a. simple interest or
3.6% p.a. interest compounding yearly. At this stage, you do not anticipate having
to withdraw your money in the short term; however, it may be necessary to do so.
forced to withdraw your money at any period of time within 12 years. When using
graphics calculators, there are often different ways of approaching a problem, as
we often nd when solving problems using pen and paper. The TI-89 Titanium
graphics calculator allows us to show two different methods that could be used to
solve this problem.
1 To nd an algebraic solution, it is necessary to
nd the intersection of the two simultaneous
equations:
FV = 20 000 + for simple
interest
FV = for compound interest.
On a calculator screen, complete the entry line as:
solve
= , x.
Then press .
The simple and compound interest funds will have the same value after
approximately 10.1 years. At this stage it is unknown which of the two funds
provide the better option prior to this time. Looking at their graphs can determine
this.
20 000 4.25 x
100
------------------------------------------
20 000 1
3.6
100
--------- +

x
20 000
20 000 4.25 x
100
------------------------------------------ +

20 000 1
3.6
100
--------- +

x
ENTER
A p p e n d i x 601
2 To draw the graphs, press and
select Y = editor.
y1(x) = 20 000 + (20 000 + 4.25 x 100)
y2(x) = .
3 To draw the two graphs, press [GRAPH].
The graph shows that the simple interest
investment (the straight line) is initially better
than the compound interest investment (curved
line). The two intersect at a point, after which
the compound interest investment is better.
4 To nd the point of intersection, press:
(Math)
5: (Intersection).
Press on any point on the rst curve
then at any point on the second curve.
To set the bounds between which the calculator
will look for the intersection, select points before
and after the intersection.
The point of intersection will appear.
After approximately 10.1 years, the two investments both amount to $28 576.20.
APPS
20 000 1
3.6
100
--------- +

x
F5
ENTER
602 A p p e n d i x
Chapter 1 page 48
The effective interest rate can be calculated quickly using a graphics calculator. From
Worked example 17 take I% = 3.5% and n = 12.
1. To calculate the effective interest rate press:
HOME
CATALOG
(Flash Apps).
Scroll down and select the Eff( function.
TIFinance.Eff(3.5, 12).
This gives an effective interest rate of
3.56% p.a. (to 2 decimal places).
Graphics Calculator
Graphics Calculator
tip!
tip! Calculating effective interest rates
F3
A p p e n d i x 603
Chapter 2 page 60
Modelling appreciation with the aid
of a graphics calculator
You have purchased a rare coin that the coin dealer told you should appreciate by
15% each year. You paid $850 for the coin and hope that its value will treble within
the next 10 years. The coin dealer is not sure whether this is the case, so you offer
to produce a graph for him displaying the value of the coin over the next 10 years.
Using a graphics calculator greatly simplies the calculations and will produce a
graph that can be used to determine the value of the coin at any period of time. The
following screens displayed and instructions supplied are those of the TI-89
Titanium graphics calculator.
1 To draw a graph, press and select the
Graphs option. To set an appropriate scale
press [WINDOW].
Complete the elds as shown and press .
2 Press [Y=] and complete the entry line as:
y1(x) = 850 (1 + 15 100)^ x.
Then press .
To draw the graph press [GRAPH].
3 To trace the values on the graph, press
(Trace). Then use the arrow keys to move
along the curve and nd a value as close as
possible to $850 3.
APPS
ENTER
ENTER
F3
604 A p p e n d i x
Chapter 2 page 66
With the aid of a graphics calculator, produce a graph showing the relationship between
the age and value of the computer in Worked example 4.
THINK WRITE
To draw a scatterplot of the data, press
and select CellSheet.
Enter the year data in column A and the
values in column B.
Press:
(Plot)
1: (Plot Setup)
(Dene).
Complete the table as shown.
Note that the xRange is the years
(A1:A5) and the yRange is the values
(B1:B5).
Press [WINDOW] and enter the
settings shown at right.
To draw the scatterplot, press
[GRAPH].
Note: Ensure any previous entries in the
Y= editor have been cleared.
To connect the points, press:
3: (Line).
Move the cursor to the rst point and
press , then move it to the last
point and press again.
1
APPS
2
F2
F1
3
4
5
F7
ENTER
ENTER
6
WORKEDExample
A p p e n d i x 605
Chapter 2 page 71
Use a graphics calculator for the problem in Worked example 8.
THINK WRITE/DISPLAY
To solve an equation, press:
HOME
CATALOG.
Then use the arrow keys to select the
solve command.
solve(60 000 7500n = 10 000, n).
Write the solution. Solve S = V
o
Dn, for n,
given S = 10 000, V
o
= 60 000 and D = 7500.
1
2
9
WORKEDExample
606 A p p e n d i x
Chapter 2 page 80
Use a graphics calculator to solve Worked example 14.
THINK WRITE/DISPLAY
a To create a table of values using a spreadsheet,
press and select CellSheet.
Enter the year data 0 to 8 in column A.
Move the cursor to cell B1. Press:
3: (Fill Range).
Initial Formula: = 20 000 2500 a1
Range: B1: B9.
Then press .
a
Repeat the above steps for column C entering
the formula as:
= 20 000 (1 20 100)â1.
b To draw graphs of the Straight Line Depreciation and
the Diminishing Value Depreciation, press
and select Graph. Clear any existing function, select
[WINDOW], enter the values as shown and
press .
b
To enter the functions press [Y=].
y1 = 20 000 2500 x
y2 = 20 000(1 20 100)^x.
Pressing after each line.
Press [GRAPH] to draw the graphs.
1
APPS
F3
ENTER
2
1
APPS
ENTER
2
ENTER
15
WORKEDExample
A p p e n d i x 607
THINK WRITE/DISPLAY
To nd the intersection point of these two
graphs press:
(Math)
5: (Intersection).
Move the cursor to any point on the rst
graph and press .
Move the cursor to any point on the second
graph and press .
Move the cursor to any point before the
intersection to set the lower bound and press
.
Move the cursor to any point after the
intersection to set the upper bound and press
.
Write the solution. The straight line depreciation becomes
less than the diminishing value
depreciation after 6 years.
3
F5
ENTER
ENTER
ENTER
ENTER
4
608 A p p e n d i x
Chapter 2 page 89
Christina invests $500 into a fund every 6 months at 9% p.a. interest, compounding six
monthly for 10 years. Calculate the future value of the annuity after 10 years.
THINK WRITE/DISPLAY
Press and select the Finance option.
Enter the data as shown.
n = 10 2 (Interest is calculated twice a year
for 10 years.)
I% = 9 (Interest rate is 9% p.a.)
PV = 0 (No deposit is made initially only
regular 6-monthly payments.)
PMT = 500 (Regular $500 payments are made.)
PpY or P/Y = 2 (Regular payments are made twice
a year.)
CpY or C/ Y = 2 (Interest is calculated twice a year.)
Move the cursor to the FV eld and press
(Compute) to calculate its value.
Write the answer. The future value of the annuity
after 10 years is $15 685.71.
1 APPS
2
3
F2
4
19
WORKEDExample
A p p e n d i x 609
Chapter 2 page 90
Vicky has the goal of saving $10 000 in the next 5 years. The best interest rate that she can
obtain is 8% p.a., with interest compounded annually. Calculate the amount of the annual
contribution that Vicky must make.
THINK WRITE/DISPLAY
Press and select the Finance option.
Enter the values in the elds as shown.
n = 5 1 (Interest is calculated once a year for
5 years.)
I% = 8 (Interest rate is 8% p.a.)
PV = 0 (No deposit is made initially.)
PMT = 0 (This is the unknown value which
will be calculated.)
FV = 10 000 (The future value is $10 000.)
PpY or P/Y = 1 (Vicky makes one payment per year.)
CpY or C/Y = 1 (Interest is calculated yearly.)
Use the arrow keys to highlight the PMT line and
press .
Write the answer. A payment of $1704.56 is
required as the annual
contribution.
1 APPS
2
ENTER
3
20
WORKEDExample
610 A p p e n d i x
Chapter 3 page 130
Loan repayments
Using the TI-89 Titanium graphics calculator
The features used in this investigation are available in the nance section of the TI-89
Titanium graphics calculator. You are advised to consult with your manual before
commencing, so you are familiar with the variables and format of the functions.
The nance section enables us to examine aspects of periodic payments on loans
or investment accounts.
the interest SInt( and principal SPrn( portion of each instalment
the balance bal( of the principal after any instalment
the total interest SInt( paid on the loan to any particular point
Task 1
To calculate the monthly repayment required to pay
off the loan of $100 000 in 20 years, press
and select the Finance option.
From the information given, enter the data as shown.
n = 12 20 = 240 (Monthly payments for 20 years)
I% = 6%
PV (present value) = 100 000
PMT = 0 (this is the value required)
FV (future value) = 0 (loan paid off)
PpY = 12 (Payments are monthly 12 per year)
CpY = 12 (Interest is calculated monthly)
PT: END (Interest calculated at the end of the month)
Move to the PMT eld and then press (Compute).
The screen displays a monthly payment of $716.43.
Move to the FV eld and then press (Compute).
The future value is $2.1 10
9
($0.000 000 002 1
a value very close to zero), meaning that the loan has
been paid off.
Task 2
1 Looking at the interest and principal portion of each instalment.
To calculate the interest paid on the rst payment,
press HOME and then press CATALOG. Press
(Flash Apps) and select the SInt function.
TIFnance.SInt(1,1).
Then press to display the interest for the
rst month.
The interest paid on the rst payment is $500.
APPS
F2
F2
F3
ENTER
A p p e n d i x 611
To see the principal component of Instalment 1, press:
HOME
CATALOG
(Flash Apps).
Then select the SPrn function.
TIFnance.SPrn (1,1).
Press to display the principal component
for the rst month. This shows only $216.43 of the
$716.43 (30%) goes towards paying off the
principal; the remainder is interest.
To display the interest of payment 2, repeat the
previous procedure, and complete the entry line as:
TIFnance.SInt(2, 2).
Then press .
To display the principal component of payment 2,
repeat the previous procedure, complete the entry
line as:
TIFnance.SPrn(2, 2).
Then press .
Describe what you notice.
Investigate the change in the interest and principal
components as the loan progresses from Payment 1
to Payment 240 (the last instalment).
2 Looking at the balance of the principal after any instalment
To calculate the balance of the loan after the rst
payment, press:
HOME
CATALOG
(Flash Apps).
Select the bal(function.
TIFnance.bal(1).
Then press .
This will display the balance at the end of the rst month.
The balance on the loan after the rst payment is $99 783.60. Change the payment
number and investigate what happens over the duration of the loan?
F3
ENTER
ENTER
ENTER
F3
ENTER
612 A p p e n d i x
3 Looking at the total interest paid on the loan to any particular point.
To nd the total interest paid on Instalments 1 and 2,
repeat the previous procedures however complete
the entry line as:
TIFnance.SInt(1, 2).
The total interest paid on instalments 1 and 2 is
$998.92.
Investigate the total interest payable over other time periods. Compare the interest
paid in the rst two instalments with that paid in the last two instalments. What do
you notice?
4 Looking at a graph showing the progress of the loan.
1. To graph the progress of the loan, press
and change the graph type to
parametric.
2. To change the window settings to suitable
values, press [WINDOW] and enter the
settings shown at right.
3. Press [Y=] and complete the entry lines as:
xt1 = t
yt1 = tinancebal(240).
To enter this y-function, press CATALOG,
then (Flash Apps) and select the balance
function. Press [GRAPH] to graph this
function.
4. To trace the balance over the life of the loan,
press (Trace). Move the cursor along the
curve to trace the balance of the loan as time
progresses.
MODE
ENTER
F3
F3
A p p e n d i x 613
Chapter 3 page 144
The TI-89 graphics calculator has a function which will calculate the number of days
between dates. This can be helpful in interest calculations involving daily balances.
To nd the number of days between:
(a) 21 April and 12 October
(b) 15 December 2008 and 15 Jan 2009.
Press:
HOME
CATALOG
(Flash Apps).
Select the dbd( function.
(a) dbd(2104,1210)
(b) dbd(1512.08,1501.09).
Dates are expressed in the form DDMM (if no year is mentioned) or DDMM.YY (if a
year is specied).
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating the number of days
between dates
F3
614 A p p e n d i x
Chapter 4 page 209
THINK WRITE/DISPLAY
Enter data.
iii To enter the data press and select CellSheet.
Then press: 3: (New).
iii Enter the list of scores in column A.
Draw the boxplot.
iii Press:
(Plot)
1: (Plot Setup)
(Dene).
Enter the settings shown at right.
iii Press [WINDOW] and enter the settings shown
at right.
iii To draw the Boxplot, press [GRAPH].
Use (Trace) and navigate over the boxplot to
show the ve-number summary.
1
APPS
2
F2
F1
F3
11
WORKEDExample
A p p e n d i x 615
Chapter 4 page 217
Interpreting histograms
The aim of this investigation is to highlight the pitfalls in interpreting the shape of
histograms. The activity is more readily conducted using a graphics calculator.
1 Consider the percentages received by a class of
36 students in their end-of-semester test.
67, 90, 83, 85, 73, 80, 78, 79, 68, 71, 53, 65, 74, 64, 77, 56, 66, 63,
70, 49, 56, 71, 67, 58, 60, 72, 67, 57, 60, 90, 63, 88, 78, 46, 64, 81.
2 To enter the data as a list, press:
Stats/List Editor.
Enter the data in list 1.
3 i To graph the data as a histogram starting at
40, with a class interval of 10, press:
(Plots)
1: (Plot Setup)
(Dene).
Complete the table as shown above right.
ii Then adjust the window settings by pressing:
ENTER
(Zoom Data)
[WINDOW].
Complete the settings as shown at right and
then press [GRAPH] to create the
histogram.
iii To see the values of the histogram, press
(Trace).
4 To view the histogram with different widths, repeat the previous steps changing
the values that have been set.
Note: The bucket width must match the xscl.
APPS
F2
F1
F5
F3
616 A p p e n d i x
Chapter 4 page 220
Using scatterplots to consider relationships between data sets
THINK WRITE/DISPLAY
Method 2 Using a graphics calculator
a To enter the data into a spreadsheet, press
and select Stats/List Editor.
Enter the mothers height in list 1 and the sons
height in list 2.
To calculate the least-squares regression line, press:
(Calc)
3: (Regressions)
2: (LinReg (ax + b)).
Complete the table as shown and press .
Note the equation of the least-squares regression line
will be stored in y1(x).
This shows that the equation of the regression line
(or line of best t) is y = 1.064x 4.332.
(Plots)
1: (Plot Setup)
(Dene).
Complete the table as shown and then press:
(Zoom Data).
b The regression line will be displayed on the scatterplot.
c To estimate the height of a son born to a 180 cm tall
mother, press HOME.
y1(180).
Then press .
The sons height is predicted to be about 187 cm.
1 APPS
2
F4
ENTER
3
4
ENTER
F2
F1
ENTER
F5
ENTER
13
WORKEDExample
A p p e n d i x 617
Chapter 7 page 384
Linear inequations can be sketched with the aid of a graphics calculator. For instance,
the graph of the inequation in Worked example 3 can be graphed as follows.
First transpose the inequation to make y the subject: y 4x + 8.
1. To graph an inequation, press and select
Graphs. Press [Y =] and complete the entry
line as:
y1 = 4x + 8.
Then press .
2. To determine if the shaded region should be above or
below the line, test the point (0, 0). Since 0 < 4(0) + 8
we must shade the area below containing the point
(0, 0).
3. In the Y = editor highlight the function y1 and press:
(Style)
8: (Below).
Then press [GRAPH] to graph the inequality.
Graphics Calculator
Graphics Calculator
tip!
tip!
Graphing linear inequations
APPS
ENTER
F6
618 A p p e n d i x
Chapter 7 page 388
A calculator can be used to nd a solution for Worked example 4
The TI-89 graphics calculator can be used to solve simultaneous equations both alge-
braically and graphically.
To solve the simultaneous equations algebraically,
press and select the Home screen.
solve(2x 3y = 6 and x = 3y 6, x).
Then press .
1. To solve the simultaneous equations graphically, press
and select the Graph application.
2. To adjust the window settings to accommodate the
graphs press [WINDOW] and enter the settings
shown at right.
3. Press [Y =] and rearrange the equations to
make y the subject.
y1 = x 2
y2 = x + 2.
Press [GRAPH] and the two graphs will appear
on the screen.
4. To nd the coordinates of the point of intersection of
these two lines, press:
(Math)
5: (Intersection).
Press at a point on the rst curve and again at
a point on the second curve.
To select the upper and lower bound, move the cursor
to a point near the intersection and press at a
point just before and just after the point
of intersection. The point of intersection
will be displayed.
Graphics Calculator
Graphics Calculator
tip!
tip!
Solving simultaneous linear
equations
APPS
ENTER
APPS
2
3
---
1
3
---
ENTER
F5
ENTER
ENTER
A p p e n d i x 619
Chapter 7 page 394
1. To nd the graphical solution of the simultaneous
linear inequations, press and select the Graph
application.
Press [Y =] and complete the entry lines as:
y1 = x + 2
y2 = x 3
Press [GRAPH] to draw the graph of the two
functions.
2. To shade the required region, in the Y = editor, use a
test point.
Substituting the point (0, 0) into the inequality
gives 0 < 2, so the region below the
line, which contains (0, 0) should be shaded. Substi-
tuting the point (0, 0) into the inequality y2 x 3
gives 0 3 and so the region below the line, which
does not contain (0, 0) should be shaded.
Highlight the equation and press:
(Style)
8: (Below).
Repeat for the equation y2 = x 3
Then press [GRAPH].
3. To nd the intersection point, press:
(Math)
5: (Intersection).
Press at a point on the rst curve and again
at a point on the second curve.
Move the cursor to a point near the intersection and
press at a point just before and just after the
point of intersection to select the upper and lower
bound. The point of intersection will be displayed.
Graphics Calculator
Graphics Calculator
tip!
tip!
Solutions to simultaneous linear
inequations
APPS
2
3
------
ENTER
y1
2
3
------ x 2 +
y1
2
3
------ x 2 +
F6
F5
ENTER
ENTER
620 A p p e n d i x
Chapter 10 page 519
Graphics calculators can greatly simplify calculating binomial probabilities. Here are
the steps required for solutions to Worked examples 13, 14 and 15.
HOME
CATALOG
(Flash Apps).
Select the binomPdf function.
2. For Worked example 13, there were 4 trials with
a 0.5 probability of success, with an X value (number
of required heads) of 3.
TIStat.binomPdf(4,0.5,3).
Then press .
3. Repeat the steps above for Worked example 14 and
TIStat.binomPdf(7, 0.6, 4).
Then press .
4. For Worked example 15 repeat the previous steps,
however in this case select the binomCdf function.
5. Complete the entry line as:
TIStat.binomCdf(7, 0.6, 4).
Then press .
Graphics Calculator
Graphics Calculator
tip!
tip!
Calculating binomial probabilities
F3
ENTER
ENTER
ENTER
A p p e n d i x 621
Chapter 11 page 554
A graphics calculator can be used to readily determine the percentage of a distribution
which lies between certain values. This can be illustrated with Worked example 6.
1. To calculate the cumulative probability between two
scores, press and select Stat/List Editor then
press:
(Distr)
4: (Normal Cdf).
2. Complete the table as shown for part a and press
.
This shows that 68% of the scores obtained on a commonly used IQ test
lie between 85 and 115.
3. Repeat the steps above for parts b.
4. Repeat the steps above for parts c.
Graphics Calculator
Graphics Calculator
tip!
tip!
APPS
F5
ENTER
622

G l o s s a r y

Adjacent

The side next to the angle used for ref-
erence in a right-angled triangle.

Allowable deduction

A deduction from taxable
income permitted by the Australian Taxation
Ofce. Allowable deductions include expenditure
incurred in earning income.

Allowance

An extra payment made to a worker
for working in unfavourable conditions.

Angle of depression

The angle through which
you must look down from the horizontal to sight
an object.

Angle of elevation

The angle through which you
must look up from the horizontal to sight an
object.

Annual leave

A period of time that each perma-
nent employee is allowed each year for holidays.

Annual leave loading

An extra payment of
17 % of the gross pay made to employees when
they take their annual leave.

Annulus

The area between two circles that have
the same centre (concentric).

Area

The amount of space within the boundary
of a closed gure.

Bar graph

A graph where categorical data are
displayed in horizontal bars, with the categories
on a vertical axis and quantity on the horizontal
axis.

Bimodal

A set of scores for which two scores
occur most often.

Bivariate data

Sets of data containing two
variables.

Bottom plate

Timber or metal strip at the bottom
of a frame.

Box-and-whisker-plot

A method of graphically
displaying a ve-number summary. The plot is
drawn to scale with the box representing the
interquartile range and the whiskers representing
the range. Within the box the median is also
shown.

Brace

Sheets of timber, or strips of timber or
metal used to provide strength to a frame and
help the frame to retain its shape.

Budget

A list of a persons income and expenses.
A personal budget is made to try to avoid
spending more than is earned. A balanced budget
is where income equals expenditure.

Building square

A device used by builders to
check whether corners of buildings are square.

Capacity

The quantity of solid, liquid or gas that
a 3-D object could hold.

Casual rate

A higher rate of pay to compensate
casual workers for the lack of holiday and sick
pay.

Categorical data

Data which are not numerical
and are put into categories such as types of car.

Causality

When the occurrence of one variable
causes another. For example there is a strong
positive relationship between a persons shirt size
and shoe size but one does not cause the other.
On the other hand, there is a strong positive
relationship between the amount of a Lottery
jackpot and the number of tickets sold. In this
case, it would seem that one does cause the other.

Census

Data gathered from the entire popu-
lation.

Central tendency

A method for describing a
typical score in a data set. There are three
measures of central tendency mean, median
and mode.

Closed question

One that must be answered
within given categories.

Column graph

Similar to a bar graph, but the
data are displayed in vertical columns.

Commission

Payment made to a salesperson. A
commission is usually paid as a percentage of
sales.


Two events that cover
all possible outcomes to a probability experi-
ment. The sum of the probabilities to complemen-
tary events is 1.

Continuous data

Data which can take any value
within a given range.

Cosine ratio

The ratio of the adjacent side and
hypotenuse in a right-angled triangle.

Course

A course of bricks is an alternative
expression for a row of bricks.

Cumulative frequency

A progressive total of
the frequencies.

Curing

Allowing concrete to dry slowly to
increase its strength.
1
2
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G l o s s a r y

623

Cyclic trends

Trends that uctuate up and down
but not according to season.

Data

Information before it is organised.

Database

An organised set of data on a population.

Deduction

A sum of money that is deducted from
an employees gross pay before receiving net pay.

Dependent variable

A variable whose value
responds to changes in the independent variable.

Discrete data

Discrete data are where the data
can take only certain values, usually whole
numbers.

Double time

A penalty rate which pays the
employee twice the normal hourly rate.

Drop

A vertical length. The term is commonly
used in wallpapering and curtaining.

Effective width

The width of a sheet, taking into
account overlap between adjacent sheets.

Elevation

A scale drawing of what a building
will look like from one side.

Enlargement

A gure is drawn similar to, but
larger than the original. The corresponding sides
will be in equal ratio and all corresponding
angles will be equal.

Equally likely outcomes

These occur when each
element of the sample space for a probability
experiment is equally likely to occur.

Event

An occurrence that is being examined in a
probability experiment.

Exchange rate

The rate at which currencies can
be interchanged. Buying rate refers to the rate at
which banks will buy the currency from you.
Selling rate refers to the rate banks will sell you
a currency.

Extrapolate

To extend a graph so as to make
predictions about future trends.

Favourable outcomes

Elements from the
sample space that meet the requirement for an
event to occur.

Feasible region

All the points that satisfy a
system of linear inequations.

Five-number summary

A summary of a data set
consisting of the lower extreme, lower quartile,
median, upper quartile and upper extreme.

Floor plan

A plan showing the oor dimensions
of a structure and detailed dimensions of features
duch as doors, windows, wall thicknesses and
stairs.

Footings

Trenches (in the shape of rectangular
prisms) dug around the perimeter of a slab, and
sometimes within the slab as a support for
internal walls.

Frequency

The number of times an event
occurs.

Frequency histogram

A graph suitable for stat-
istical (quantitative) data. It is a column graph
drawn with scores or class centres on the hori-
zontal axis and frequency on the vertical axis. A
unit (half column width) space is drawn before
the rst column with no other gaps between
columns.

Frequency polygon

A line graph often drawn on
the same axes as a frequency histogram. The line
is drawn from the corner of the axes to the centre
of each column.

Frequency table

A table displaying statistical
data. For ungrouped data the table will have
columns for score, tally, frequency and possibly
cumulative frequency. For grouped data the score
column will be replaced with a class column and
a class centre column.

Fundamental counting principle

The number
of elements of the sample space for a multi-stage
probability experiment is found by multiplying
the number of ways each stage can occur. This is
the fundamental counting principle.

Gable roof

In the shape of an inverted V with
two rectangular surfaces.

Goods and Services Tax

A tax that is levied on
the price of all items other than fresh food. The
GST is levied at a rate of 10%.

GPS (Global Positioning System)

A satellite
navigation system accessed by users on land, sea,
or in the air, operated by the US Department of
Defense.

Gradient

The rate of increase (or decrease) in
the dependent variable per one unit increase in
the independent variable.

Great circle

A circle of the greatest possible dia-
meter that can be drawn on the surface of a sphere.

Greenwich Mean Time (GMT)

The standard
time in Greenwich which is used as the basis for
calculating the time in all other parts of the world.

Greenwich Meridian

The meridian of longitude
from which angular distances in the eastwest
direction are measured. Using the longitude cal-
culated from the Greenwich Meridian, time in
different places on the Earths surface is
calculated.

Gross pay

A persons earnings before any
deductions are taken out.
1
2
---
624

G l o s s a r y

Group certicate

see

PAYG Payment Summary
Statement.

Grouped data

A data set tabulated in small
groups rather than as individual scores.

Grout

A mixture rubbed between tiles to provide
separation and to bind them together.

Hip roof

Generally consists of two trapezium-
shaped surfaces and two triangular surfaces.

Histogram

A column graph which displays the
frequency for a set of scores.

Horizontal

Level, at and parallel to the horizon
or the ground.

Hypotenuse

The longest side of a right-angled
triangle. The hypotenuse is opposite the right
angle.

Income

Money received by a person that is tax-
able and is usually in exchange for labour or the
result of an investment.

Income tax

Tax that is paid on all income received.

Independent variable

A variable whose value
does not depend on the value of another variable.

Indirect tax

Any tax that is not paid directly to
the government by the taxpayer. For example, the
GST is an indirect tax because it is paid to the
retailer who then passes it on to the government.

International Date Line

The meridian of longi-
tude opposite to the Greenwich Meridian. The
International Date Line is, however, bent for con-
venience. When crossing the International Date
Line, the date changes.

Interpolate

Drawing a graph using data found at
the end points.

Interquartile range

A number that represents
the spread of a data set. The interquartile range is
calculated by subtracting the lower quartile from
the upper quartile.

King post

Vertical post from the horizontal tie
beam of a truss to the apex of the truss.

Latitude

The angular distance of a point on the
Earths surface either north or south of the equator.

Linear metre

Length expressed in metres.

Linear programming

A mathematical technique
used to solve real-life problems in which a par-
ticular quantity is to be maximised or minimised.

Line of best t

A line drawn on a scatterplot that
passes through or is close to as many points as
possible.

Lintel

A timber or metal strip above a door or
window.

Lower extreme

The lowest score in the data set.

Lower quartile

The lowest 25% of scores in a
data set.

Mean

The average of a data set, found by total-
ling all the scores then dividing by the number of
scores.

Median

The middle score or the average of the
two middle scores in a data set.

Medicare levy

A payment made as part of our
tax system that covers the cost of basic health
care services. The basic levy is 1.5% of gross
income; however, low income earners pay the
levy at a reduced rate.

Meridian of longitude

A line on the Earths sur-
face that runs from the North Pole to the South
Pole. Each meridian of longitude is measured by
the number of degrees east or west it is of the
Greenwich Meridian.

Mode

The score in a data set with the highest
frequency.

Mortar

A mixture of cement and sand used to
bind bricks together (and keep them a xed dis-
tance apart).

Multi-stage event

This occurs when there is
more than one part to a probability experiment.
For example, tossing two coins can be con-
sidered as tossing one coin then tossing another,
therefore there are two parts to this experiment.

Net pay

The amount of money actually received
by the employee after all deductions have been
subtracted from the gross pay.

Nogging

Horizontal separators between studs in
a frame.

Nominal data

Categorical data which have no
order associated with them.

Non-compliant response

A response that does
not t within the expected responses or categ-
ories provided in a questionnaire.

Numerical data

Data which involve numbers or
measurements.

Open question

One that has no guidelines
within which to answer.

Opposite

The side opposite to the angle used for
reference in a right-angled triangle.

Ordinal data

Categorical data that are associ-
ated with some qualitative scale.

Ordinary rate

The normal hourly rate for a
wage earner.

Outcome

A possible result to a probability
experiment.

Overtime

This is when a person earns more than
the regular hours each week.
G l o s s a r y

625

Parallel of latitude

A line on the Earths surface
parallel to the equator. Each parallel of latitude is
measured in terms of the angular distance either
north or south of the equator.

PAYG

Pay As You Go. The method usually
applied to the collection of tax.

PAYG Payment Summary Statement

A state-
ment of gross income and the PAYG tax
deducted from that income throughout the nan-
cial year. It is given to the employee by the
employer at the end of each nancial year.

Payment by piece (Piecework)

Payment for the
amount of work completed.

Penalty rate

A higher rate of pay made to a
person who is working overtime.

Per annum

per year.

Percentage chance

The probability of an event
expressed as a percentage.

Perimeter

The distance around the boundary of
a gure.

Piecework

see Payment by piece.

Pitch

The angle the roof makes with the horizontal.

Pitch ratio

The pitch of a roof expressed as a
tangent ratio in the form 1 :

x

.

Plumb bob

A device consisting of a length of
string with a weight attached at one end. It is
used to test whether a surface is vertical.

Polygon

A line graph displaying the frequency
for a set of scores.

Population

An entire group of people or objects
to which a statistical inquiry is applied.

Prism

A solid shape with a constant cross-
section.

Probability

A number between 0 and 1 that
describes the chance of an event occurring.

Pyramid

A solid shape with a plane shape as its
base and triangular sides meeting at an apex.

Pythagoras theorem

In a right-angled triangle,
the square on the hypotenuse is equal to the sum
of the squares on the other two sides.

Pythagorean triad or Pythagorean triple

Sets of
three numbers which satisfy Pythagoras theorem.

Qualitative data

Data which do not involve
numbers or measurement.

Quantitative data

Data which can be measured.
A numerical value can be assigned to them.

Quartile

25% of the data set. The upper quartile
is the top 25% of the data set and the lower quar-
tile is the bottom 25% of the data set.
Questionnaire A set of questions completed for
a statistical investigation.
Rafter Beam at the top of a truss to which the
roof cladding is attached.
Random trends Those trends which occur ran-
domly, caused by external events such as wars,
oods.
Range A number which represents the spread of
a data set. The range is calculated by subtracting
the smallest score from the largest score.
Recording error Where data have been incor-
rectly recorded.
Reduction A similar gure, drawn smaller in
size than the original.
Regression line A line of best t that is extrapo-
lated to make predictions about data.
Reinforcing mesh Steel mesh laid in the con-
crete in the footings and slab to provide struc-
tural strength.
Relative frequency A number between 0 and 1,
usually a decimal, which describes how often an
event has occurred. The relative frequency is
found by dividing the number of times an event
has occurred by the total number of trials.
Retainer A xed payment usually paid to
someone receiving commission. They receive the
retainer regardless of the number of sales made.
Roof truss Frame providing shape and strength
for a roof.
Royalty A royalty is a payment made to the
owner of a copyright such as a musician or
author. The royalty is usually a percentage of
sales.
Salary A form of payment where a person is
paid a xed amount to do their job. A salary is
usually based on an annual amount divided into
weekly or fortnightly instalments.
Sample When data are gathered from a portion
of the population, that is taken to be represen-
tative of the whole population.
Sample space A list of all possible outcomes to
a probability experiment.
Scale factor A number by which the side lengths
on the rst of two similar gures is multiplied by
to obtain the measurements on the second of the
gures.
Scatterplot A graph that shows two variables,
one on each axis, and their relationship by plot-
ting the points generated by each data pair.
Score Each piece of quantitative data is a score.
Seasonal trend A trend that uctuates with the
changing seasons.
626 G l o s s a r y
Sector The area between any two radii of a
circle.
Sector graph A graph where a circle is cut into
sectors. Each sector then represents a section of
the data set. Each sector is the same proportion
of the circle as the part of the data set it rep-
resents.
Secular trend A trend that appears to either
increase or decrease steadily over time, with no
major changes of direction.
Sill Timber of metal strip below a window.
Similar (gures) Two or more gures with cor-
responding angles equal and corresponding sides
in the same ratio.
Sine ratio The ratio of the opposite side and the
hypotenuse in a right-angled triangle.
Site plan A plan showing the boundaries of a
block of land and the position of the structure on
the lot.
Slab Foundations for a structure.
Small circle A circle that is drawn on the surface
of a sphere that is of a smaller diameter than a
great circle.
Sphere A closed surface consisting of points in
space that are a xed distance, the radius, from a
given point, the centre.
Spirit level A device, usually constructed of alu-
minium, containing a vial of liquid with an air
bubble. It can be used to determine whether a
surface is horizontal and whether a surface is
vertical.
Standard deviation A measure of the spread of
a data set. The standard deviation is found on a
calculator using either the population standard
deviation or the sample standard deviation.
Statistics Numerical facts compiled to describe a
data set.
Stem-and-leaf-plot A method of displaying a
data set where the rst part of a number is
written in the stem and the second part of the
number is written in the leaves.
Studs Vertical strips of timber or metal in a
frame.
Summary statistic A number such as the mean,
median or mode which describes a data set.
Survey plan A plan showing all boundaries of
blocks of land and the position of roadways.
Tangent ratio The ratio of the opposite side and
the adjacent side in a right-angled triangle.
Taxable income The amount of income upon
which the amount of tax due is calculated. Tax-
able income is calculated by subtracting any
allowable tax deductions from the total gross
income.
Three-dimensional Can be described using
three measurements (for example a length, a
width and a height).
Tie beam Beam at the base of a truss.
Time and a half A penalty rate where the
employee is paid 1 times the normal hourly
rate.
Time series Bivariate data where one of the vari-
ables is time.
Top plate Timber or metal strip at the top of a
frame.
Tree diagram A method of listing the sample
space to a multi-stage probability experiment.
The diagram branches once for each stage of the
experiment at each level showing all possible
outcomes to each stage.
Trend line A straight line used to represent a
time series.
Trial The number of times a probability experi-
ment has been conducted.
Trigonometry A branch of mathematics in which
sides and angles of triangles are calculated.
Two-dimensional Can be described using two
measurements (for example a length and a
width).
Upper extreme The highest score in a data set.
Upper quartile The highest 25% of scores in a
data set.
Value Added Tax Similar to the GST, a VAT is
levied in many countries on the cost of goods
and services. The rate of VAT varies from
country to country.
Volume The amount of space contained in, or
occupied by, a 3-D object.
Wage A form of payment that is based on an
hourly rate.
Water level A device consisting of a length of
clear hose lled with water. It can be used to
establish levels between two poins which are
separated by some distance.
y-intercept The value of y when a function
crosses the vertical axis.
1
2
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A n s w e r s

627

a
n
s
w
e
r
s

CHAPTER 1 Simple and
compound interest

Skills check

1 a

$1

b

$8.75

c

$1.50

d

$0.25

e

$4

f

$0.25

2 a

7.25

b

0.0725

c

0.2

d

0.002

e

0.125

f

0.001

3 a

year

b

year

c

year

d

2 years

e

4 years

f

2 years

4 a

450

b

525

c

21 000

d

1.157 625

e

1.083

f

1.877

Exercise 1A Simple interest

1
2
3
16

$584.50

17 a

The Big-4 Bank offers the better rate.

b

The Big-4 Bank charges 11 % p.a. for a loan
while The Friendly Building Society charges 12%
(

=

12

1% per month).

18 a

$627.13

b

$12 542.50

19 a i

$1540.63

ii

$6162.50

b

Yes

20 a

$2247

b

$15 729

c

7 years

Exercise 1B Finding

P

,

R

and

T

1
2
3
14 a

Yes ($1112.50)

b

No

c

Yes ($1600 in 23 months)

d

Yes ($1281.60)

Exercise 1C Graphing simple interest
functions

1 a
b
2 a

b
c

1600

d

$16 000

3 a
b
c

a

$136.00

b

$56.70

c

$145.25

d

$110.40

e

$255

f

$336.89

g

$178.57

h

$43.88

i

$11.76

j

$229.68

k

$544.05

a

$103.50

b

$2700

c

$325

d

$131.25

a

$360

b

$1020

c

$27 700

d

$17.70

e

$13.67

4

B

5

C

6

B

7

A

8

B

9

D

10

D

11

B

12

A

13

$465.50

14

$25.50

15

$2418.75

a

$3070

b

$4400

c

$5425

d

$236.36

e

$2500

a

10%

b

6.25%

c

80%

d

2.125% or 2 %

e

3.36%

a

1 year

b

18 months

c

3 months

d

7 years

e

1 month

4

$1515.79

5

$2133.33

6

$352

7

24 months

8

3 years

9

C

10

C

11

D

12

E

13

A
1
4
---
1
6
---
2
3
---
1
12
------
5
12
------
1
2
---
1
3
---
1
2
---
1
8
---

No. of years

1 2 3 4 5

Interest

$400 $800 $1200 $1600 $2000

No. of years

1 2 3 4 5

Interest

$1600 $3200 $4800 $6400 $8000
0
1 2 3 4 5
500
I
n
t
e
r
e
s
t

(
$
)
Years
1000
1500
2000
0
0
1 2 3 4 5 6 7 8 9 10
2000
I
n
t
e
r
e
s
t

(
$
)
Years
4000
6000
8000
10 000
12 000
14 000
16 000
0
0
1 2 3 4 5
2000
I
n
t
e
r
e
s
t

(
$
)
Years
4000
6000
0
1 2 3 4 5
200
I
n
t
e
r
e
s
t

(
$
)
Years
400
600
800
1000
0
0
0
1 2 3 4 5
1000
I
n
t
e
r
e
s
t

(
$
)
Years
2000
3000
4000
0

1A

1C
628

A n s w e r s

a
n
s
w
e
r
s
d
4

288

5 a
b
6 a

b
7 a

b
8 a

$4500, $5000, $5200

b

$875

9

10 Quick Questions 1

1

$800

2

$1260

3

$2700

4

$1.90

5

$7000

6

$138

7

$215.44

8

$1998.75

9

53c

10

$173.58

Exercise 1D Calculation of
compound interest

1

$6655

2

$17 173.50

3

$2938.66

4 a

$4630.50

b

$9274.19

c

$24 488.80

d

$13 503.78

e

$12 588.72

5

$70 555.25

6

$502

7

$14 059.91

8

$31 850.33

9 a

$1003.69

b

$9111.56

c

$181 402.12

d

$20 039.67

e

$1 264 568.95

10

B

11

C

12

E

13

D

14 a

$15 746.40

b

$15 793.09

c

$15 817.40

d

$15 833.99

15 a

0.0219%

b

$108 320.72

c

$8320.72

d

$320.72

16 a

$4720

b

$4726.24

c

Compounding interest

Exercise 1E Graphing compound
interest functions

1 a
b
2 a

b c

$25 900

3 a
b
4 a

No. of years

1 2 3 4 5

Interest (5%)

$1250 $2500 $3750 $5000 $6250

Interest (6%)

$1500 $3000 $4500 $6000 $7500

Interest (8%)

$2000 $4000 $6000 $8000 $10 000

No. of years

1 2 3 4 5

Interest (3%)

$165.00 $330.00 $495.00 $660.00 $825.00

Interest (3.5%)

$192.50 $385.00 $577.50 $770.00 $962.50

Interest (3.75%)

$206.25 $412.50 $618.75 $825.00 $1031.25
0
1 2 3 4 5
5000
I
n
t
e
r
e
s
t

(
$
)
Years
10 000
15 000
20 000
0
0
1 2 3 4 5
100
I
n
t
e
r
e
s
t

(
$
)
Years
200
300
400
0
1 2 3 4 5
I
n
v
e
s
t
m
e
n
t

(
$
)
Years
3200
0
3400
3600
0
0
1 2 3 4 5
5000
I
n
t
e
r
e
s
t

(
$
)
Years
10 000
0
8%
6%
5%
0
1 2 3 4 5
500
I
n
t
e
r
e
s
t

(
$
)
Years
1000
1500
0
3.75%
3.5%
3%
1 2 3 4 5
4000
I
n
v
e
s
t
m
e
n
t

(
$
)
Years
4500
5000
0
0
6.2%
5.8%
5.2%

No. of years

1 2 3 4 5

Future value

$8400 $8820 $9261 $9724 $10 210

No. of years

1 2 3 4 5

Future value

$12 960 $13 997 $15 117 $16 326 $17 632

Years

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

FV

$2060 $2122 $2185 $2251 $2314 $2388 $2460 $2534 $2610 $2688
1 2 3 4 5
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
8000
8500
9000
9500
0
10 000
0
1 2 3 4 5 6 7 8 9 10
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
10 000
15 000
20 000
25 000
30 000
0
0
1 2 3 4 5
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
15 000
20 000
25 000
0
0
1 2 3 4 5
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
2000
3000
4000
0
0
A n s w e r s

629

a
n
s
w
e
r
s
b
5 a b

6 a

b
7 a

b


1

$2051.28

2

$17 253

3

$3437.50

4

$429.69

5

$2315.25

6

$315.25

7

$6792.58

8

$6805.66

9

$6812.41

10

$14 700.69

Exercise 1F Nominal and effective
interest rates

1

4.06% p.a.

2

4.08% p.a.

3

3.79% p.a.

4 a

4.27% p.a. effective rate

b

4.26% p.a. effective rate
So 4.2% p.a. compounding quarterly is better.

5

5.095% effective rate, 5.12% effective rate
Choose 5% p.a. compounding monthly.

Chapter review

1

$1000

2 a

$1296

b

$2820

c

$42

d

$4.05

e

$7617.58

3 a

$7280

b

$39 780

c

$455

4

B

5

D

6

B

7

6.5% p.a.

8

15 months

9

D

10

E

11

B

12 a
b
c

450

d

$4500

13

$2778.30

14

$5700.47

15 a

$3932.39

b

$12 596.90

c

$14 457.96

d

$23 851

e

$5334.67

16

$756.94

17 a

$12 024.02

b

$12 052.04

c Compounding interest
18 a
b
c $29 600
19 3.94% p.a.
20 4.18% p.a., 4.08% p.a.
Choose 4.1% p.a. compounding monthly.
21 a 3.95% p.a. effective b 3.97% p.a. effective
c 3.96% p.a. effective
Choose 3.895% p.a. compounding monthly.
CHAPTER 2 Appreciation and
depreciation
Skills check
1 a 1.1 b 1.01 c 1.0175
d 0.9625 e 0.955 f 0.9975
2 a $4 b $5 c $3.95
d 41c e $1.10 f $4.37
3 a $44 b $3 c $7.64
d $18 e $135.94 f $3940
4 a 40% b 87.5% c 64.5%
d 4.5% e 51.4% f 1.56%
5 a 1.06 b 0.94 c 1.04
d 0.97 e 1.03 f 0.97
Interest (4%) $320 $653 $999 $1359 $1733
Interest (6%) $480 $989 $1528 $2100 $2706
Interest (8%) $640 $1331 $2078 $2884 $3755
Annually $4240 $4494 $4764 $5050 $5353
Six-monthly $4244 $4502 $4776 $5067 $5376
F
u
t
u
r
e

v
a
l
u
e

(
$
)
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Years
0
0
2000
2100
2200
2300
2400
2500
2600
2700
1 2 3 4 5 6 7 8 9 10
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
1400
1600
1800
1200
0
0
0
1 2 3 4 5 6 7 8 9 10
100
C
o
m
p
o
u
n
d

i
n
t
e
r
e
s
t
e
a
r
n
e
d

(
$
)
Years
200
300
400
500
600
0
1 2 3 4 5
I
n
t
e
r
e
s
t

(
$
)
Years
1000
2000
3000
4000
0
0
Interest (8%)
Interest (6%)
Interest (4%)
1 2 3 4 5
4000
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
4500
5000
5500
0
0
Annually
Six-monthly
Interest $450 $900 $1350 $1800 $2250
Future value $20 800 $21 632 $22 497 $23 397 $24 333
0
1 2 3 4 5 6 7 8 910
500
I
n
t
e
r
e
s
t

(
$
)
Years
1000
3500
4000
4500
1500
2000
2500
3000
0
0
0
1 2 3 4 5 6 7 8 9 10
F
u
t
u
r
e

v
a
l
u
e

(
$
)
Years
20 000
21 000
22 000
23 000
24 000
25 000
26 000
27 000
28 000
29 000
30 000
1D
1F
630 A n s w e r s
a
n
s
w
e
r
s
Exercise 2A Ination and
appreciation
1 $20 800
2 a $618 b $48.15 c $3.71
d $579.60 e $932.40
3 a $878.05 b $901.76
4 $117.90 5 $619 6 $2.52
7 $2.35 8 $122.80 9 E
10 $500 11 $2350 12 $2460
Exercise 2B Modelling depreciation
1 a
b V = 100 000 10 000t
2 V = 50 000 8000t
3 a
b $20 000 c 9 years
4 a V = 6400 2000A
b c 4
5 a b $2000
6 a b $17 000 c 7
7 a i $160 000 ii $128 000 iii $102 400
iv $81 920 b
8 B
b See part d.
d
e 6 years
Exercise 2C Straight line
depreciation
1 $20 000
2 a $1000 b $10 300 c $270 000
d $145 e $32 000
3 a $7 125 000 b $3 750 000
4 $10 600
5 8 years
6 a 6 years b 5 years
c 8 years d 7 years
7 $2500/year
8 a $4000/year b $12 500/year c $14 500/year
9 $900/year
10 $25 000
11 a $110 000 b $26 500 c $1450
12 $78 000
0
20 000
40 000
60 000
80 000
100 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
10 000
20 000
30 000
40 000
50 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
10 000
20 000
30 000
40 000
50 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
1000
2000
3000
4000
5000
6000
7000
1 0 2 3 4
V
a
l
u
e

(
$
)
Age (years)
0
4000
8000
12 000
16 000
20 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
120 000
240 000
360 000
480 000
620 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
9 a
New (0) 30 000
1 26 000
2 22 000
3 18 000
4 14 000
5 10 000
c
New (0) 30 000
1 24 000
2 19 200
3 15 360
4 12 228
5 9 830
0
40 000
80 000
120 000
160 000
200 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
6000
12 000
18 000
24 000
30 000 Straight line value
Declining balance
value
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
A n s w e r s 631
a
n
s
w
e
r
s
Exercise 2D Declining balance or
diminishing value method of
depreciation
1 $20 480
2 a $2220 b i $750 ii $390
3 7 years
4 $383 000
5 a $5900 b $68 100 c $1200
d $62 100 e $3900
6 $6174
7 $676 000
8 a $14 600 b $20 400
9 A
10 C
11 a $5360 b $2640
c $3591 d $1769
12 5 years
1 $650 2 $2350/year
3 7 years 4 $21 000
5 S = V
o
6 $7250
7 $11 000 8 $389 000
9 $37 500 10 16 years
Exercise 2E Depreciation tables
1 a $1638.50 b $9537.50 c $34 870
2 a
b c After 6 years
b
Age of car
(years)
Straight line
value ($)
Diminishing
value ($)
New (0) 40 000 40 000
1 35 000 32 000
2 30 000 25 600
3 25 000 20 500
4 20 000 16 400
5 15 000 13 100
6 10 000 10 500
7 5000 8400
8 0 6700
1
R
100
---------

T
0
8000
16 000
24 000
32 000
40 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
Straight line
value
Diminishing
value
3 a
Age of
equipment
(years)
Straight line
value ($)
Diminishing
value ($)
New (0) 100 000 100 000
1 90 000 85 000
2 80 000 72 250
3 70 000 61 400
4 60 000 52 200
5 50 000 44 350
6 40 000 37 700
7 30 000 32 050
8 20 000 27 250
9 10 000 23 150
10 0 19 700
4
Age of
computer
(years)
Salvage value
at 20% ($)
Salvage value
at 35% ($)
1 3520.00 2860.00
2 2816.00 1859.00
3 2252.80 1208.35
4 1802.24 785.43
5 1441.79 570.53
6 1153.43 331.84
7 922.75 215.70
8 738.20 140.21
9 590.56 91.14
10 472.45 59.24
5
Years
Salvage value
($)
Tax deduction
($)
1 4355 2145
2 2918 1437
3 1955 963
4 1310 645
5 878 432
6 0 878
0
20 000
40 000
60 000
80 000
100 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
Straight line
value
Diminishing
value
1 2 3 4 5
3000
S
a
l
v
a
g
e

v
a
l
u
e

(
$
)
Years
20% depreciation
35% depreciation
4000
4500
2000
1000
0
0 6 7 8 9 10
2A
2E
632 A n s w e r s
a
n
s
w
e
r
s
b
8 a $10 000 b c $2500
9 a $3000 b $75 c $1600 d $750
Exercise 2F Future and present
value of an annuity
1 $7049.37
2 a $6691.13 b $16 859.14
c $6158.56 d $3974.56
e $17 713.21 f $3530.21
3 $4472.93 4 $90 237.49
5 a $20 326.23 b $24 297.37
c $45 881.32 d $69 770.03
6 D 7 $4067.23
8 a $4524.37 b $7068.59 c $1930.08
9 $4787.76
10 a $1324.00 b $23 932.35
c $7503.81 d $62 953.50
11 a 4% b 10 c $6003.05
12 a $4103.92 b $5335.38 c $7546.74
13 5% for 6 years. $1 will grow to $6.8019 but at 6%
for 5 years it will grow to $5.6371.
14 E 15 $6918.50
16 a $1845.09 b $12 289.20
c $4455.79 d $16 604.40
1 $15 937.42 2 $15 937.40
3 $13 537.79 4 $1435.91
5 $5084.04 6 $19 277.16
7 $22 094.93 8 $8513.56
9 $10.64 10 $13 300
Investigation A growing investment
1 A = 20 000
2
6
Years
Salvage value
($)
Tax deduction
($)
1 33 750 11 250
2 25 313 8438
3 18 985 6328
4 14 239 4746
5 10 679 3560
6 8009 2670
7 6007 2002
8 4505 1502
7 a
Age of
truck
(years)
Straight line
value
($)
Diminishing
value
($)
New (0) 250 000 250 000
1 225 000 200 000
2 200 000 160 000
3 175 000 128 000
4 150 000 102 400
5 125 000 81 920
6 100 000 65 536
7 75 000 52 429
8 50 000 41 943
9 25 000 33 554
10 0 26 844
c
Age of
truck
(years)
Salvage
value
straight line
($)
Tax
deduction
($)
1 225 000 25 000
2 200 000 25 000
3 175 000 25 000
4 150 000 25 000
5 125 000 25 000
6 100 000 25 000
7 75 000 25 000
8 50 000 25 000
9 25 000 25 000
10 0 25 000
0
50 000
100 000
150 000
200 000
250 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
Straight line
value
Diminishing
value
Age of
truck
(years)
Salvage
value
declining
balance ($)
Tax
deduction
($)
1 200 000 50 000
2 160 000 40 000
3 128 000 32 000
4 102 400 25 600
5 81 920 20 480
6 65 536 16 384
7 52 429 13 107
8 41 943 10 486
9 33 554 8389
10 26 843 6711
1
3
---
1
6
100
--------- +

T
A n s w e r s 633
a
n
s
w
e
r
s
3
4
5
Chapter review
1 $83.44 2 $149.90 3 $7900
4 a b V = 200 000 20 000A
5 a
b V = 3500 250A c $1250
6 a
b $10 500 c 17 years
7 a
b $6500 c 9 years
8
9 $6500
10 a $1300 b $15 000 c $235 000
11 12 years 12 $250/year 13 After 6 years
14 $20 880
15 $474 000
16 a $23 620 b $1000 c $24 290
d $27 210 e $49 380
17 a $167 100 b $432 900
b
20 $41 039.20
21 a $4399.95 b $34 641.25
c $1842.84 d $51 014.25
22 $2242.95
23 a $1516.32 b $14 047.20
c $4055.45 d $11 177.64
0
40 000
80 000
120 000
160 000
200 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
1000
2000
3000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
4000
8000
12 000
16 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
10 000
20 000
30 000
40 000
50 000
60 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
18 a
Age
(years)
Salvage value
straight line
($)
Salvage
value
15% p.a. ($)
New (0) 100 000 100 000
1 90 000 85 000
2 80 000 72 250
3 70 000 61 400
4 60 000 52 200
5 50 000 44 350
6 40 000 37 700
7 30 000 32 050
8 20 000 27 250
9 10 000 23 150
10 0 19 700
19
Year
Salvage value
($)
Tax deduction
($)
1 3015 1485
2 2020 995
3 1353 667
4 907 446
5 0 907
0
2000
4000
6000
8000
10 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
0
20 000
40 000
60 000
80 000
100 000
0 2 4 6 8 10
V
a
l
u
e

(
$
)
Age (years)
Salvage
value straight line
Salvage
value
15% p.a.
The investment will
grow to $30 000 in
7 years.
2F
2F
The investment
grows to $30 000 in
6 years; that is, a year
earlier.
The solved function
shows that $30 000 is
actually reached in
5.3 years.
Investing $15 000 at
9.05% p.a. will reach
$30 000 in 8 years.
634 A n s w e r s
a
n
s
w
e
r
s
CHAPTER 3 Consumer credit and
investments
Skills check
1 a b 1 c
d 2 e f
2 a 0.1 b 0.01 c 0.025
d 0.0375 e 0.005 f 0.0125
3 a 18 b 33 c 8
d 2 e 69 f 15
4 a i 30 ii 30 iii 31
b i 45 ii 33 iii 56
c i 25 Feb. ii 24 Aug. iii 13 Apr.
5 a $440 b $20 c 37.5%
Exercise 3A Flat rate interest
1 a $700 b $1200
c $7500 d $2850 e $390
2 $1584
3 $5000
4 a $4060 b $21 330
c $1803.75 d $308.25
e $275 000
5 a $1650 b $3850
c $693 d $6193
6 a $1600 b $6600
c $137.50
7 a $800 b $2800
c $53.85
8 a $2000 b $6000
c $2160 d $8160
e $226.67
9 $43.33
10 B 11 D 12 8% p.a.
13 a $2400 b $9600
c $16 319.88 d 15% p.a.
14 15% p.a.
Exercise 3B Home loans
1 a $800 b $79 950
2 a $312.50, $49 848.99 b $151.01
c $311.56, $49 697.04 d $151.95
c $440.66
5 $243 123
6 a $302 308.80 b $241 500 c $60 808.80
7 A
8 B
9 a $112 034 b $86 072
c $61 789.40 d $39 329.60
10 a Smith $6000, Jones $9000
3
Month
Principal
($) Interest ($)
Balance
owing ($)
1 150 000.00 1200.00 149 791.99
2 149 791.99 1198.34 149 582.32
3 149 582.32 1196.66 149 370.97
4 149 370.97 1194.97 149 157.93
5 149 157.93 1193.26 148 943.18
6 148 943.18 1191.55 148 726.72
7 148 726.72 1189.81 148 508.52
8 148 508.52 1188.07 148 288.58
9 148 288.58 1186.31 148 066.88
10 148 066.88 1184.54 147 843.41
1
12
------
1
2
---
1
365
---------
1
2
---
1
52
------
1
26
------
4 a
Month
Principal
($)
Interest
($)
Balance
owing ($)
1 85 000.00 637.50 84 872.73
2 84 872.73 636.55 84 744.51
3 84 744.51 635.58 84 615.32
4 84 615.32 634.61 84 485.16
5 84 485.16 633.64 84 354.03
6 84 354.03 632.66 84 221.92
7 84 221.92 631.66 84 088.81
8 84 088.81 630.67 83 954.71
9 83 954.71 629.66 83 819.60
10 83 819.60 628.65 83 683.48
11 83 683.48 627.63 83 546.34
12 83 546.34 626.60 83 408.17
b
Month
Principal
($)
Interest
($)
Balance
owing ($)
1 85 000.00 637.50 84 837.50
2 84 837.50 636.28 84 673.78
3 84 673.78 635.05 84 508.83
4 84 508.83 633.82 84 342.65
5 84 342.65 632.57 84 175.22
6 84 175.22 631.31 84 006.53
7 84 006.53 630.05 83 836.58
8 83 836.58 628.77 83 665.35
9 83 665.35 627.49 83 492.84
10 83 492.84 626.20 83 319.04
11 83 319.04 624.89 83 143.93
12 83 143.93 623.58 82 967.51
b i Smith family
Month
Principal
($)
Interest
($)
Balance owing
($)
1 50 000.00 395.83 49 895.83
2 49 895.83 395.01 49 790.84
3 49 790.84 394.18 49 685.02
4 49 685.02 393.34 49 578.36
5 49 578.36 392.50 49 470.86
6 49 470.86 391.64 49 362.50
7 49 362.50 390.79 49 253.29
8 49 253.29 389.92 49 143.21
9 49 143.21 389.05 49 032.26
10 49 032.26 388.17 48 920.43
11 48 920.43 387.29 48 807.72
12 48 807.72 386.39 48 694.11
A n s w e r s 635
a
n
s
w
e
r
s
c $3134.16
1 $420 2 $1135.20
3 $7025 4 $975
5 $5525 6 $2817.75
7 $8342.75 8 $231.74
9 $1640 10 $265 577
Exercise 3C The cost of a loan
1 11.6%
2 a 11.6% b 8.32% c 15.2%
d 10.6% e 12.2%
3 a 8.32% b 8.66% c 9.01%
d 9.39% e 11.6% f 18.3%
4 a $213 996 b $128 996 c 6.0704%
5 9.01%
6 Loan 1
7 a $231 546 b $200 745.60
c $145 593.60
8 Loan 2 they will save $6041.
9 C
10 a $341 376 b $337 578
11 D
12 a $562 279.20 b 6.25% c 5.8%
Exercise 3D Loan repayments
1 $674.25
2 a $90.46 b $341.25 c $819.84
d $1101.00 e $1515.54
3 a $400 b $3600 c $123.05
4 They will not need to increase their repayments.
5 a $1510.20 b $1620.14
6 Yes. The repayment is $744 and the most he can
afford is $750.
7 a $7000 b $1750 c $178 000
8 a $733.40 b $174.80
Exercise 3E Bonds, debentures and
term deposits
1 $3200 2 $315 3 $472.50 4 $1500
5 $1800 6 $612.50 7 B 8 A
9 A 10 D 11 B 12 D
13
14
Exercise 3F Bank savings accounts
1
2
3 9%
4
5
6
7
1 $2835 2 160% p.a.
3 $299 191.20 4 10.3%
5 6.0% 6 $45.23
7 $264.40 8 $375
9 $5825 10 $2.23
b ii Jones family
Principal
($)
Interest
($)
Balance owing
($)
1 50 000.00 395.83 49 645.83
2 49 645.83 393.03 49 288.86
3 49 288.86 390.20 48 929.06
4 48 929.06 387.36 48 566.42
5 48 566.42 384.48 48 200.90
6 48 200.90 381.59 47 832.49
7 47 832.49 378.67 47 461.16
8 47 461.16 375.73 47 086.89
9 47 086.89 372.77 46 709.66
10 46 709.66 369.78 46 329.44
11 46 329.44 366.77 45 946.21
12 45 946.21 363.74 45 559.95
a $22.15 b $84.99 c $297
a i $1406.25 ii $1350 iii $1321.88
b No difference
a $2066.10 b $9.47
a 8 cents b 12 cents
1 May Balance B/F 2132.20
3 May Cheq 4217 460.27 1671.93
7 May Deposit 230.16 1902.09
17 May Cheq 4218 891.20 1010.89
26 May Wages 1740.60 2751.49
31 May Interest 5.69 2757.18
2 June Deposit 415.10 3172.28
8 June Cheq 4220 2217.00 955.28
19 June Cheq 4219 428.50 526.78
21 June Cheq 4222 16.80 509.98
23 June Wages 1740.60 2250.58
30 June Interest 2.87 2253.45
1 July Deposit 22.80 2276.25
4 July Cheq 4221 36.72 2239.53
18 July Cheq 4223 280.96 1958.57
26 July Wages 1740.60 3699.17
31 July Interest 11.02 3710.19
a $33.95 b $14.37
4 Aug
5 Aug
10 Aug
15 Aug
18 Aug
20 Aug
30 Aug
31 Aug
1 Sept
2 Sept
5 Sept
5 Sept
15 Sept
20 Sept
29 Sept
30 Sept
Salary
Health fund
Health fund
Electricity a/c
Salary
Rent
Visa
Interest
Salary
Telephone a/c
Tax refund
Health fund
Salary
Rent
Salary
Interest
327.60
150.26
620.80
180.00
180.64
327.60
620.80
1410.20
68.20
1410.20
6.25
1410.20
461.27
1410.20
1410.20
17.79
1410.20
1082.60
1150.80
1000.54
2410.74
1789.94
1609.94
1616.19
3026.39
2845.75
3307.02
2979.42
4389.62
3768.82
5179.02
5196.81
a i $6.25 ii $15.06 iii $8.81
b i $4.79 ii $4.77 iii $0.02
c i $10.94 ii $16.86 iii $5.92
3A
3F
636 A n s w e r s
a
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s
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s
Exercise 3G Investing in real estate
1 a $2448.75 b $3656.25 c $12 000
2 a $244.88 b $365.63 c $1200
3 a $77 256.37 b $124 228.12 c $448 800
4 $80 750
5 a $1873 b $2693 c $10 249
6 a $189 123 b $271 933 c $552 369
7 a $266 942.50 b $482 875 c $15 932.50
8 $17 995
9 $127 500
10 $385 000
11 $620 000
Exercise 3H Investing in the stock
market
1 $18 808.13 2 $2479.95
3 $5170.05 4 $15 950.40
5 25 c/share 6 $1.50/share
7 6 c/share 8 29.27 c/share
9 a $1.224 million b $2.176 million
c 43.52 c/share
10 a $9.28 million b $6.08 million
c 76 c/share
11 $3.276 million
12 4.57%
13
14 2.91% 15 B 16 $364
17 a 6.6% b $1.06/share
18 a $1.44 b $7.488 million
19 8.5%
20 a 0.59% b $10.64
c 6.4 c/share d 0.6%
21 a $77.50 b 1.2% c 82.6
22 a $60 b 1.2% c 83.3
23 a 5000 b 0.75% c 133.3
24 23.3
Exercise 3I Graphing share
performance
1 a
b $7.00
2 a
b $1.75
3 a
b $1.20
4 a
b $16.00
5 a
b $14.50
History of mathematics The Wall
Street Crash
1 The Wall Street Crash was caused mainly by panic,
which caused there to be more sellers and virtually no
buyers in the market.
2 Share prices declined rapidly.
3 The crash caused the collapse of the American and
other economies throughout the world, paralysing
businesses and causing widespread poverty.
History of mathematics The Dow
Jones Industrial Average
1 Wall Street Journal journalists Charles Dow and
Eddie Jones
2 30
3 Sum of 30 stock prices divided by 0.2252
4 Technology, telecommunications
Chapter review
1 a $1120 b $7187.50 c $1281.60
d $39.60 e $12 285.00
2 $6760
3 $191.02
4 6.15%
5 a $1250 b $124 873.64
Dividend Share price Dividend yield
$0.56 $8.40 6.7%
$0.78 $7.40 10.5%
$1.20 $23.40 5.1%
$1.09 $15.76 6.9%
$0.04 $0.76 5.3%
6.50
6.70
6.90
7.10
7.30
6.30
6.10
5.90
5.70
1
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14.00
16.00
10.00
12.00
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12.50
12.00
13.00
13.50
14.00
14.50
A n s w e r s 637
a
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s
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c $5137.21
7 a $596 844 b $18 884
8 a 7.25% b 13.70%
c 25.65% d 14.11%
9 a $18 223.20 b $4723.20 c 7%
10 Loan 2
11 $21.15
12 a $316.75 b $599.40
c $2110.45 d $5100
13 a $2453.49 b $2618.06
14 C 15 E 16 A
17 $2700 18 $694.17 19 $2520
20 $5000 21 A
22 a $1.08 b $1.15
23 a $3.33 b $3.64
24 $10 575 25 $901.63 26 $236 425.45
27 $475 166 28 $15 548.05 29 $47 352.75
30 $1.93/share 31 $14.74/share 32 5.22%
33 1.6% 34 81.8 c/share
35 a $260 b 2.5% c 40.4
36 a
b $18.00
CHAPTER 4 Exploring and
understanding data
Skills check
1 a 0.375 b 0.083 c 0.813 d 0.590
2 a 75% b 12.5% c 42.5% d 4%
3 Answers will vary.
4 a 4 b 4 c 3 d 7 e 1
5 a a = 8 b b = 9 c c = 22.5
d d = 17.5 e e = 10.5
6 Scale on axes, omitting certain values, giving a 3D
visual impression, using a non-linear scale on the axes
7 a 73 b 7.3 c 7 d 6
e 6 f 8 g 6 h 2
Investigation Australias population
and housing census
1 This is a statistical collection of data to determine the
number of people in Australia on Census Night, the
characteristics of these people and the dwellings in
which they live.
2 All people in Australia on Census Night take part.
3 It is compulsory.
4 Questions asked include: age, marital status,
birthplace, income, type of dwelling, type of job
The questions have changed over the years to take
into account changing social conditions of the
population; such as language spoken at home,
computer usage
5 A census can provide information necessary for future
planning.
6 The ABS has access to the information and details of
individuals are protected by the Privacy Act.
7 All dwellings are issued with census booklets, which
are delivered and collected by ABS workers. The
booklets are completed by all individuals on the same
night.
Exercise 4A Populations and
samples
1 Census, sample
2 Census every member of the population
participates
3 Survey
4 a Survey b Survey c Census
d Census e Survey
5 a Survey b Census c Census
d Sample
6 Survey
7 80, 84, 71, 85, 79, 54, 56, 51, 81, 67
8 Range of answers
9 Range of answers
10 Should be three different sets of numbers
6 a
Month
Principal
($)
Interest
($)
Balance
owing ($)
1 130 000.00 866.67 129 779.30
2 129 779.30 865.20 129 557.13
3 129 557.13 863.71 129 333.47
4 129 333.47 862.22 129 108.32
5 129 108.32 860.72 128 881.67
6 128 881.67 859.21 128 653.51
7 128 653.51 857.69 128 423.83
8 128 423.83 856.16 128 192.62
9 128 192.62 854.62 127 959.87
10 127 959.87 853.07 127 725.57
11 127 725.57 851.50 127 489.70
12 127 489.70 849.93 127 252.26
b
Month
Principal
($)
Interest
($)
Balance
owing ($)
1 130 000.00 866.67 129 366.67
2 129 366.67 862.44 128 729.11
3 128 729.11 858.19 128 087.30
4 128 087.30 853.92 127 441.22
5 127 441.22 849.61 126 790.83
6 126 790.83 845.27 126 136.10
7 126 136.10 840.91 125 477.01
8 125 477.01 836.51 124 813.52
9 124 813.52 832.09 124 145.61
10 124 145.61 827.64 123 473.25
11 123 473.25 823.16 122 796.41
12 122 796.41 818.64 122 115.05
15.50
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4A
638 A n s w e r s
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Exercise 4B Bias
1 Check with your teacher.
3 a Sample does not represent characteristics of
population
b No control over responses
c Unrepresentative sample
d Abnormal conditions
e Only extreme groups in sample
4 The decrease in the value of the Australian dollar
compared with the American dollar is accentuated by
the large scale on the y-axis. The decrease is actually
only 2 cents. The scale on the x-axis is not uniform
(9 May, 11 May, 12 May).
5 What type of university tests? What do the terms
consistently, majority, more effective, most
other mean? No hard evidence has been provided to
support the claim.
6 a There would be many more student drivers in
Year 12 than in Year 11 perhaps also some in
Year 10.
b Students with part-time jobs are in lower year
levels as well.
c Residents not at the neighbourhood watch meeting
have been ignored.
d Other music students who play instruments and
dont belong to the choir have been excluded.
e The composition of cars in a shopping centre
car park is not representative of the cars on the
road.
f Females have been excluded.
g Users of the local library would not reflect the
views of teenagers.
Investigation Contingency tables
from census data
1 a 9.0% b 42.8%
c Part (a) compares the number of males in the retail
trade with the total number of male workers, while
in part (b) the comparison is with the total number
in the retail trade.
d It would be easier to survey those in the retail
trade rather than surveying the male population,
as the former number is smaller than the second.
2 Choose another category to survey.
3 Percentage of persons in agriculture, forestry and
shing
= 100%
= 3.1%
4 Analyse data from the 2001 census.
Exercise 4C Contingency tables
3 a 1000 b 75 c 96.7% d 60%
4 a 200 b 44 c 90.9% d 5.1%
e 94% f Check with your teacher.
5 C 6 E 7 A
b i 96% ii 3.3% iii 4% iv 96.5%
9 a ii b ii c ii
10 a
b
c
d
e 11.6%
f 69.5%
g Survey a sample of those in education rather than
conducting a survey on a sample of females as
the total education group is fewer in number than
the total female group.
1 Test results
With virus 98 2 100
Total 486 14 500
280 912
9 104 184
-----------------------
2 Test results
Total Accurate
Not
accurate
Telling truth 777 23 800
Telling lies 156 44 200
Total 933 67 1000
8 a
Test results
Total Accurate
Not
accurate
Bags with
prohibited
items 48 2 50
Bags with no
prohibited
items 145 5 150
Total 193 7 200
Male Female
Education 212 813 484 993
Other 4 698 322 3 708 056
Male Female Total
Education 212 813 484 993 697 806
Other 4 698 322 3 708 056 8 406 378
Total 4 911 135 4 193 049 9 104 184
Male Female
Education 4.3% 11.6%
Other 95.7% 88.4%
Total 100% 100%
Male Female Total
Education 30.5% 69.5% 100%
Other 55.9% 44.1% 100%
A n s w e r s 639
a
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11 a
b i Yes
ii No 7.7% for males and 8.1% for females
12 a
b i 58% ii 45%
c No 69% attend
1 Census 2 Survey 3 Census
4 The question leads the responder to an expected
answer of yes by using emotional words and
ideas.
5 Should the tax rates for upper-income earners be
raised?
6 Those supporting one side of the issue may be more
motivated to call in; certain groups of the population
may be misrepresented among viewers of the
program; it is costly to make the call and this might
deter some.
7 200 nights 8 44 times 9 90.9%
10 5.1%
Exercise 4D Interpreting the shape
of histograms, stem-and-leaf plots and
boxplots
1 a Symmetric
b Negatively skewed
c Positively skewed
d Symmetric
e Symmetric
f Positively skewed
2 a Symmetric
b Symmetric
c Symmetric
d Negatively skewed
e Negatively skewed
f Positively skewed
3 E 4 C
5 Negatively skewed
6 Positively skewed. This tells us that most of the ight
attendants in this group spend a similar number of
nights interstate per month. A few stay away more
than this and a very few stay away a lot more.
7 a Symmetric
b This tells us that there are few low-weight dogs
and few heavy dogs but most dogs have a weight
in the teens (in kg).
8 a Symmetric
b Most students receive about $8 (give or take $2).
9 a Positively skewed
b This indicates that most workers do up to 3 hours
of exercise per week. Very few do more and the
most time spent is 8 hours.
10 a III b IV c I d II
11 The boxplots should show the following:
12 D
13
14
15
The data are negatively skewed with an outlier on the
lower end. The reason for the outlier may be that the
person wasnt at the show for long or possibly didnt
like the rides.
16
The data are symmetric, although there is an outlier
on the upper end. The reason for the outlier may be
that the person loves music CDs or is able to get CDs
more easily.
Exercise 4E Interpreting data in
practical situations
1 a Yes b 3 c Yes, both equal 3 d 3
2 a No b 59 and 2024 c No
d 59 and 2024 e 2529
3 a b Yes
c 0 and 5 d Yes, both equal 2.5
e 0
4 a 2 b 2 c 5
Male Female Total
1519 years 3 749 3 819 7 568
All other ages 44 647 43 249 87 896
Total 48 396 47 068 95 464
Male Female Total
Attending an
educational
institution 2171 2623 4794
Not attending
an educational
institution 1578 1196 2774
Total 3749 3819 7568
Minimum
value Q
1
Median Q
3
Maximum
value
a
b
c
d
e
3
3
4.3
11
0.4
6
5
4.6
15.5
0.7
8.5
7
5
18
0.9
14
9
5.4
20
1.1
18
12
5.6
22
1.3
1 2 3 4 5
Number of clients seen in a day
6 7 8 9
16 17 1819 20
Temperature (C)
21 22 23 24 2526 27 28 29 30 31 32
0 2 4 6 8 10
Number of rides
6 8 10 12 14
Number of CDs
F
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Number of goals
0
1
2
3
4
5
6
0 1 2 3 4 5
4B
4E
640 A n s w e r s
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5 a b 0.73
6 A
7 a b No
c 151200 and 201250
d 0.67
e 0.17
8 a Chemistry is symmetrical.
Maths is not symmetrical.
b Chemistry: mode = 4150 and 8190,
Maths: mode = 7180
c Maths, because there are more scores further
away from the centre of the distribution.
d Yes, both 0.275
e Mathematics
f P(>90% Chem) = 0.05
P(>90% Maths) = 0.1
9 157 10 About 32 visitors
11 a 7 b 18
12 a Lines vary.
b Factory 1 is cheaper at $43.21 (compared to
Factory 2 at $56.61).
c Factory 2 is cheaper at $167 (compared to
Factory 1 at $217).
d Factory 2 is marginally more linear.
13 a English 66, Maths 63.5
b English 32, Maths 53
c The marks are more spread in Maths than in
English.
14 a
b Boys 1.64 m, girls 1.62 m
c Boys 0.34 m, girls 0.18 m
d Boys 0.14 m, girls 0.07 m
e The spread of heights is much greater among
boys than among girls.
15 a Year 7: range = 0.4, Year 12: range = 0.26
b Year 7: interquartile range = 0.15,
Year 12: interquartile range = 0.11
c The range of heights is greater in Year 7 as shown
by the range and the IQR. The heights become
less spread by the time they get to Year 12.
16 a 43.2% b 1.9%
c 0.9% d 2.6%
e More evident in males with three times the
number of drivers over the limit
17 a 90.5% b 55.6%
c Yes, as a much greater percentage of games are
won with Ashley playing.
18 a Chemistry, 69.25
b Physics, because of the lower standard
deviation
19 a Point A: = 61, SD = 4.5,
Point B: = 58.8, SD = 12.7
b Point A because of the higher mean
c Point B because of the greater standard
deviation
20 a Aaron: = 38.1, Sunil: = 39.3
b Aaron: range = 76, Sunil: range = 65
c Aaron: interquartile range = 16,
Sunil: interquartile range = 57
d Aaron is more consistent because although he has
a larger range this is caused by one outlier.
Aarons interquartile range is much less, showing
his consistency.
21 A
22 a
b Machine A: = 49.96, SD = 2.96,
Machine B: = 50.12, SD = 2.49
c Machine B has a lower standard deviation and so
is more dependable.
Investigation Modelling Olympic
Games times
1 Scatterplot
2 Line of best t
3 Prediction
The line of best t predicts a time of 9.5 seconds in
the year 2034. The Olympic Games closest to this
year is 2032 or 2036.
2
1
3
0
1
1
2
0
3
1
4
0
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1
5
0
5
1
6
0
Number of goals
0
5
10
15
20
25
5
1
1
0
0
1
5
0
1
0
1
1
5
0
F
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1
5
1
2
0
0
2
0
1
2
5
0
Number of people
0
2
4
6
8
10
Scale 1.4 1.45 1.5 1.55 1.6 1.65 1.7 1.75 1.8 1.85 1.9
Boys
Girls
x
x
x x
Scale 62 42 44 46 48 50 52 54 56 58 60
Matchbox A
Matchbox B
x
x
A n s w e r s 641
a
n
s
w
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Investigation The door game
Part II
P(winning if stay) =
P(winning if change mind) =
If you change your mind you will double your chance
of winning from 1 in 3 to 2 in 3.
1 23.3 2 21.5
3 16 4 29
5 5 6 7.93
7 No 8 Yes, 45 is an outlier.
9 Median, because the outlier inates the mean
10 The outlier makes the range very large.
Chapter review
1 a Survey b Census c Census
d Survey
2 E
7 a 140 b 30 c 90% d 10%
8 a 130 b 33.8% c 97.5%
9 B
10 a 200 b 96% c 34 d 93 % e 93%
11 a 9.7% b 8.0%
c No signicant difference
12 C
13 a
b Secondary students were much keener on having
more holidays than were primary students.
14 C
15 A
16 a Positively skewed
b There would need to be a shift of some of the
amounts in the twenties to the thirties and forties.
17 E
18 B
19 D
20 a
b Approximately symmetric
21 a Yes b Both are 17.5.
c 17 and 18 d 17 and 18
22 a A variety of answers
b About 130
23 a b No
c 0.15
24 a Home: 23 000 Away: 16 000
b Home: 27 000 Away: 19 000
c Home: 19 000 Away: 9000
d
25 a Last year: median = 7, this year: median = 8
b This year
c Last year
d This year Higher median, lower limit, lower
quartile and upper limit
26 a English: = 71, Maths: = 69.3
b English: range = 43, Maths: range = 37
c English: SD = 11.6, Maths: SD = 12.0
d English, because of the lower standard
deviation
CHAPTER 5 Navigation
Skills check
1 Lines of latitude run parallel to the equator. Lines of
longitude run from one pole to the other and are east
or west of Greenwich.
2 0 3 0 4 Latitude 5 C = 2r
6 40 030 km 7 Tangent =
8 Speed =
9 The time at the prime meridian (0 longitude)
10 A triangle which has 2 sides congruent, and base
angles congruent
5 Test results
With virus 48 2 50
Total 197 3 200
6 Test results
Telling truth 77 3 80
Telling lies 17 3 20
Total 94 6 100
Attitude Primary Secondary
Fewer 7.5% 4.3%
Same 43.3% 19.1%
More 49.2% 76.6%
Total 100% 100%
1
3
---
2
3
---
1
3
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1 2 3 4 5 6 7 8 9 10
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0
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4
6
8
10
12
1 2 3 4 5 6
Scale
3
0
0
0
6
0
0
0
9
0
0
0
1
2

0
0
0
1
5

0
0
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1
8

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2
1

0
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4

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7

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3

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0
0
3
6

0
0
0
Home
Away
x x
opposite
adjacent
--------------------
distance
time
-------------------
4E
4E
642 A n s w e r s
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Exercise 5A Review of Earth
geometry
1 a (30N, 60W) b (40S, 20W)
c (30S, 50E) d (40N, 60W)
e (20N, 20W) f (30S, 20E)
2 Any 2 meridians; for example, NDS, NGS; or any
line of longitude; for example, 20W
3 a 40 b 30
c 10 d 60
4 a Johannesburg b Shanghai
c Montreal d Perth
5 a (35N, 118W) b (35S, 20E)
c (0, 100E) d (38N, 115E)
6 a 4448 km b 7784 km
c 6672 km d 7339 km
7 a 7784 km b 6450 km
8 4226 km
Exercise 5B Accurate position
description
1 a 279.6S, 15336E b 27S, 15345.9E
c 27S, 15336E d 270.9S, 15337.6E
e 271.1S, 15333.6E f 278S, 15344.5E
2 Sketch
3 a Mt Sydney b Black Island
c Pinnacle Point
4 a 202.2S, 14852.7E b 204.3S, 14858.3E
c 204.8S, 14852.2E d 2010S, 14853.6E
e 2010.5S, 14855E
Exercise 5C The nautical mile and
the knot
1 a 120 b 150 c 1422 d 2871.7
2 a 943 b 398.7
3 a 1717 b 57.3
4 a J, D b A, H c H, I
d i 50N, 80E ii 0, 0 iii 60S, 0
iv 0, 30W v 50N, 0
e i 2400 n mile ii 2400 n mile iii 5400 n mile
iv 9000 n mile v 9000 n mile
f i 6600 n mile ii 6600 n mile
g i 3600 n mile ii 3600 n mile iii 3000 n mile
5 a 1650 n mile b 3750 n mile
c 7050 n mile d 1110 n mile
6 8 knots
7 a 3.5 knots b 6.5 km/h
8 a 3.85 knots b 12.6 knots
c 289 n mile d 52.1 n mile
e 30 hours f 10 minutes
9 a 7872 hours
b 6.4 km/h, 3.4 knots
10 a 3600 n mile
b ii 3600 n mile
ii The Earth is a sphere and any arc joining
2 points on its surface subtending an angle of
60 must be separated by the same distance.
c 200 hours
11 a 570 n mile b 4.63 knots
12 3.08 am
13 A separation of 1 near the equator on a line of
latitude is greater than that further from the equator.
1 Latitude 2 Latitude 3 60
4 1852 metres 5 150 n mile
6 Speed = 7 The knot
8 6 knots 9 5400 n mile 10 5 pm
Investigation Distance to the horizon
1 Angle PHC = 90 (PH is a tangent to the circle, so CH
is perpendicular to PH.)
2 PC
2
= CH
2
+ HP
2
(by Pythagoras theorem)
3 CH = AC (Both are radii of the Earth;
both = 6371 km.)
4 a 25.2 km b 79.8 km c 112.9 km d 357.1 km
5 As height increases, distance also increases. (On a at
Earth, distance to horizon would be greater.)
Exercise 5D Using the compass
1 a 128C b 292C c 193C d 40C
2 291T 3 6E
4 a 120C b 226C c 4W d 25729T
Exercise 5E Compass bearings and
reverse bearings
1 a 50T b 300T c 230T d 145T
2 a 230T b 120T c 50T d 325T
5 a 6 n mile b 5 n mile c 11.2 n mile
d 11.4 n mile e 15.7 n mile f 10.9 n mile
6 b 12 knots
7 a 187T b 176C c 50 min d 356C
1 Compass 2 True north
3 Magnetic variation 4 Compass
5 True 6 60T 7 158C 8 180
9 Latitude 10 7 knots
Exercise 5F Fixing position
1 a Check with your teacher.
b 155T c 7.5 n mile
d 15 knots e 3.5 n mile
b 9.3 n mile c 18.6 knots
3 a 131T, 18T, 299T b 198T, 340T, 265T
c 11 knots d A 219, B 293, C 254
4 a Tower 53, Antenna 88
5 b 14 n mile c 14 n mile d 19.8 n mile
e i 243 ii 252
6 b 56 n mile c 250
Exercise 5G Transit x
1 b i 6 n mile ii 5.6 n mile iii 5.3 n mile
c Plot d 20 knots
2 c B 250, D 291, E 316
Exercise 5H Running x
1 b 6 n mile
2 b 197
distance
time
-------------------
A n s w e r s 643
a
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Exercise 5I Doubling the angle on
the bow
1 a i 50 ii 130 iii 80 iv 3 n mile
b i 100 ii 40 iii 7 n mile
c i 42 ii 96 iii 84 iv 11 n mile
d i 130 ii 25 iii 6.5 n mile iv 45T
e i 45 ii 90 iii 45 iv 10 n mile
f i 20 ii 140 iii 20 iv 8 n mile
v 8 n mile
2 a 25 b 5 n mile
3 b At 1300, 30; at 1330, 60
4 b 8 n mile c 6.2 n mile (from sketch)
d 7.03 am e 100
1 Two 2 Cocked hat 3 Transit line
4 Isosceles 5 Front
6 Angle on the bow
7 9 knots 8 4 hours
9 84 n miles 10 One
Exercise 5J Dead reckoning
b 2008.3S, 14859.7E
c Check with your teacher.
d iii 2007.3S, 14901.5E
iii 2006.3S, 14903.3E
iii 2005.3S, 14904.9E
2 a 2007.3S, 14914E
b 2000.2S, 14907E
c 2005.2S, 14909.2E
d 2001.4S, 14907.3E
3 a 3.8 n mile b 11.4 knots
c ii 2005.4S, 14904.2E
ii 2003.3S, 14901E
Exercise 5K The lighthouse and
navigation
1 a AB = 10.5 m b 1908 m
c 148 d 1.345 n mile
2 a 4 short flashes of light followed by a long period
of darkness every 20 seconds
c 3105 m
3 a 2 flashes, then darkness every 12 seconds
c 5156 m f 7.6 n mile
g i 0.48 ii 0.36
4 b 6875 m d 0.68
Exercise 5L Lets go cruising
1 a 1118 east b 11 east
2 a 2730.9S, 15320.7E
b 2730.1S, 15322.4E
c 2732.7S, 15325.2E
d 2730.6S, 15317.3E
e 2734.8S, 15321.6E
3 a Coochiemudlo Island b The Bluff
c Submerged rocks d Myora Light
4 a i 308 ii 338 iii 0 iv 266
b i 297 ii 327 iii 349 iv 255
c iii 5.1 n mile iii 5.1 n mile
iii 4.8 n mile iv 2.6 n mile
5 a iii Yellow light flashes every 2.5 seconds
iii Red every 4 seconds
iii Green every 6 seconds
b So that they can be readily identified as different
from neighbouring lights
6 a 5 n miles b 150T, 139C
c 33 minutes d 10.58 am
e A southwest wind could push the vessel towards
the rocks near Goat Island.
7 Approx. 15 n mile, so approx. 160 litres
8 a 351T, 227T b 2732.8S, 15321.6E
Exercise 5M Air navigation
1 a 2615S, 15156E b 2640S, 15200E
c 2617S, 15241E d 2633S, 15151E
2 a Tansey b The Bluff c Abbeywood
3 a 1998 b 2457 c 2043
4 a 350T, 339.5C b 05T, 355C
5 a 14930C
b Barambah Ck, Clonya, Murgon, Nanango
Chapter review
1 a A, 30N, 60W; B, 40S, 20W; C, 30S, 50E;
D, 40N, 60W
b NDS, NGS, NHS or any line of longitude (for
example, 40W)
c F
d PG, PN, PH, PC etc.
2 a 202.2S, 14852.7E
b 2010S, 14853.7E
3 a 5400 n mile b 10 800 n mile
4 a 1080 n mile b 5340 n mile
5 a 360 b 1110 c 1695 d 3457.4
6 540 n mile, 1000 km
7 a 6 knots b 13.3 knots c 522 n mile
d 198.3 n mile e 50 hours f 15 minutes
8 6 hours 24 minutes
9 a 400 n mile b 180T
c 5 hours d 6.45 pm
10 a 114C b 253C
c 6W d 206T
11 286T
12 b 9.8 n mile c 29.4 knots d 48T
13 a = 55, b = 125, c = 70, PR = 7.4 n mile
14 a 18 b 36
15 b 50, 100 c 12 n mile d 12 n mile
16 a 5.57 m b 65.8 m
c 1.68 d 5810 m
17 a 3 short ashes then long period of darkness every
16 seconds
b 130 m c 16 n mile d 2480 m
18 a 8.1 n mile b 8T
c Approx. 1 h 20 min trip, ETA 8.20 am
19 a 240T b 16.5 n mile
c Plot d 11.45 am
5A
5M
644 A n s w e r s
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CHAPTER 6 Land measurement
Skills check
1 Millimetre, centimetre, metre, kilometre
2 Perimeter
3 a 24 cm b 30 m c 15.6 cm
d 16.8 m e 12.6 m f 36.0 m
g 38 m
4 a l
2
b l w c r
2
d b h e l h
5 a 1.5 cm b 0.18 m c 12 300 cm
d 680 m e 12 500 m
6 a 40.7 m
2
b 435.8 m
2
c 51.7 m
2
d 177 m
2
e 25 m
2
7 a 0.9397 b 0.9659 c 0.3249
8 c
2
= b
2
+ a
2
9 a 5 cm b 8 cm c 9.6 m
10 a b
c
11 Sine = Cosine =
Tangent =
12 a 6.8 cm b 7.7 m c 65.0 m
Exercise 6A Perimeters and areas of
triangles
1 a 1.73 cm b 23.1 m c 11.4 m
2 a 1.73 cm
2
b 277 m
2
c 55.3 m
2
3 a 12.5 m
2
b 4.5 m
2
c 7443 m
2
d 118.2 m
2
4 a 26 m, 13 m b 90.9 m, 45.45 m
c 42.4 km, 21.2 km
5 a 27.9 m
2
b 250 m
2
c 52.4 km
2
Exercise 6B Perimeters and areas of
polygons
1 a 5797 m
2
b 1062 m
2
c 27 952 m
2
2 a 97.4 m
2
b 3195 m
2
3 Approx. 36 ha
Exercise 6C Surveying on level
ground without obstacles
1 a 32 m b 28 m c 59 m
d 73 m e 47 m
2 a 86.3 m b 107.5 m c 47.4 m
d 49.0 m
3 Sketch
4 a 120 m b 5
c i 48 m ii 39 m iii 37 m iv 32 m v 35 m
d i 65.8 m ii 44.7 m iii 34.4 m iv 90.2 m
e i 43.15 ii 1014 m
2
iii 81.2
f Sketch
g AB survey line established and measured. Staffs at
features Z and C, measurements taken. Staffs at V
and D, measurements taken.
h 2340 m
2
1 5.47 m 2 a b sin C
3 48.5 m
2
, 196.6 m
2
4
5 24.2 m
2
6 AB
7 KF, JE, ID, HC
8 36 m, 59 m, 73 m, 32 m, 84 m
9 240 m
2
10 a 51.2 b 59 m
Exercise 6D Surveying around
obstacles
1 a 42 m b 31 m c 52 m
2 Sketch
3 a Sketch
b The distance between the second and third staffs
placed by Peter
Exercise 6E Plane table surveying:
1 a 61 m
b i 43 m ii 28 m iii 106 m iv 124 m
c i 065 ii 310 iii 180 iv 150
d 301 m e 0.38 ha
2 a 59 m
b i 28.5 m ii 31.5 m iii 32 m iv 73 m
v 49 m
c 0.25 ha
d i 15 ii 81 iii 151
3 a 83 m b $1328 c 450 m
2
4 a Sketch
b i 100 m ii 66 m iii 50 m iv 90 m v 86 m
c i 270 ii 310 iii 240
d 4300 m
2
Exercise 6F Plane table surveying:
1 a i 25 m ii 35 m iii 30.5 m iv 51.5 m
b i 0 ii 070 iii 180
c 1900 m
2
2 a ii 23 m ii 72 m iii 51 m iv 12.5 m
v 104 m vi 109 m vii 75 m
b 0.31 ha
3 a Radiation b Sketch
c A, 123; B, 136; C, 152; D, 180
d 3160 m
2
4 a Sketch b Traversing
c i 212 ii 270
d i 107 m ii 77 m e 3800 m
2
1 Offset and triangulation
2 41 m, 10 m
3 Intersection (or triangulation), radiation, traversing
4 Intersection
5 Radiation
1
2
---
H
A
O
H
A O
H
A
O
opposite
hypotenuse
---------------------------
adjacent
hypotenuse
---------------------------
opposite
adjacent
--------------------
1
2
---
S S a ( ) S b ( ) S c ( )
A n s w e r s 645
a
n
s
w
e
r
s
6 Traversing
7 287.5 mm
8 4 triangles
9 Area = = 310 m
2
10 10 m
2
Exercise 6G Levelling: vertical
measurements in relation to a datum
1 a i 50.00 m ii 51.69 m
b 1.94 m c 53.63 m
d
2 a i 3.60 m ii 2.80 m iii 53.60 m iv 50.00 m
b 50.80 m
3 a 61.25 m b 61.25 m c 61.25 m
d 61.25 m e 60.00 m f 59.50 m
g 58.75 m h 58.25 m i 5.00 m
j 10.00 m k 15.00 m
Exercise 6H Topographic maps
1 Easting 84, northing 46
2 a Maculata Park b Oval
c Building at quarry
3 a GR 871464 b GR 854487
c GR 813488
4 a 3350 m b 1250 m
5 a 352 b 090
6 a Abattoirs, bridge over river on Warrego Highway,
then along river and over slag heaps
b 155. Yes. A scale diagram could be sketched and
trigonometry used to calculate angles.
Exercise 6I Contour maps
1 a 10 m b 80 m c 50 m
d Up a hill then down a steep descent, then up and
down another smaller hill
e Sketch f 5
2 a 93 m b 68 m
3 a 20 m b 10.3 km c Sketch
d 20 e 293
f No, not if X and Y are at the surface.
4 a b 16.4, steep
5 a 45 b 18.4 c 0.57
d 1.15 e 2.97
6 a 1.27
Exercise 6J Cadastral maps and site
plans
1 a 630 m
2
b 23.0 27.499 m
c 632.477 m
2
d 1 : 1500
e Rectangle of length 60 mm and width 42 mm
f ii $57.88/m
2
ii 850 m
2
g ii Lot 109
ii Location, elevation, road frontage size, views
2 a 2100 m
2
, 83 perches
b 103.68 m
2
c 56.3 m
d 0.049 or approx.
e i Rising ii 1800 mm iii 1.375
Exercise 6K Orienteering
1 a 8 b 137 c 222 d 45
2 a 67 m b 136 m c 77 m d 130 m
3 Any suitable set of 8 instructions
Chapter review
1 a 126 m
2
b 165 m
2
c 516 m
2
d 2325 m
2
e 8850 m
2
2 0.2 ha
3 a ii 150 m ii 52 m iii 63.2 m iv 13 m
v 75 m vi 141.9 m
b ii 936 m
2
ii 1533 m
2
iii 4500 m
2
iv 5912.5 m
2
4 Sketch
5 a 84 m
b i 050 ii 115 iii 295 iv 238 v 090
c 2000 m
2
d 190 m
6 a i 43 m ii 48 m iii 46 m iv 56 m v 86 m
b i 051 ii 090 iii 253
c 3200 m
2
7 a i 3.90 m ii 2.70 m iii 53.60 m iv 50.00 m
b 50.90 c Sketch
8 a i Industrial Estate ii Finlay Island
b 2.5 km c 153
9 a 250 b 1 in 5
c 11.3, steep to moderate
10 a 45 b 26.6 c 1.1
d 2.9 e 7.2
11 10
12 a 90 m b 20 m c Sketch
13 a 630 m
2
b Sketch
CHAPTER 7 Linear programming
Skills check
1 a 2 b 6 c 26
2 a 6 b 4
3 a y = 5x 6 b y = + 2 c y =
4 a A vertical line passing through (3, 0)
b A horizontal line passing through (0, 6)
c A line at an angle of 45 in the positive direction
of the x-axis
5 a y = 0
b x = 0
6 a {8, 9, 10, 11, 12, . . .}
b {. . . 3, 2, 1, 0, 1, 2, 3, 4}
c {3, 4, 5, 6, 7, 8, 9}
Exercise 7A Graphs of linear
inequations
1 a b
A 3.63 53.63 50.00 0.00 TBM
B 1.94 53.63 51.69 20.00
S S a ( ) S b ( ) S c ( )
1
3.41
----------
1
20
------
6
5
------ x
7
2
------ x
5
2
---
0
x
Region required
2
y
y 2
0
y
x
y 0
Region required
6A
7A
646 A n s w e r s
a
n
s
w
e
r
s
c d
e f
g h
i j
k l
2 a b
c d
e f
g h
i j
k l
3 E
4 a b
c d
e f
g h
i j
0
x
y
y > 1
1
Region required
6
0
x
y
y < 6
Region required
0
y > 0
Region required
y
x
0
x
y
y 6
6
Region required
0
x
y
x 4
4
Region required
0
x
y
x 0
Region required
0
x
y
x > 2
2
Region required
0
x
y
x < 1
1
Region required
0
x
y
x > 0
Region required
0
x
y
x 1
1
Region required
0
x
y
x < 7
7
Region required
0
x
y
y 2
2
Region required
0
x
y
x > 3
3
Region required
0
x
y
5
x 5
Region required
0 0
x
y
4
y > 4
Region required
3
y 3
0
x
y
Region required
0
x
y
2
x + 2 > 0
Region required
3
y 3 0
0
x
y
Region required
0
x
y
8
x 8 < 0
Region required
0
x
y
4
x + 4 0
Region required
5
y 2 < 3
0
x
y
Region required
0
8
y 6 2
0
x
y
Region required
2
4
0
y
x
y 2x 4
Region required
0
y
x
y + x 1
1
1
Region required
0
y
x
4x + 4y 16
4
4
Region required
0
y
x
y x 0
Region required
0
y
x
y x + 2
2
2
Region required
0
y
x
y > 2x 14
14
7
Region required
y
x
y < 6x 24
0
24
4
Region required
y
x
y 7x + 21
0
21
3
Region required
y
x
x + y > 0
0
1
1
Region required
y
x
y x +7
0
7
7
Region required
A n s w e r s 647
a
n
s
w
e
r
s
k l
m n
o p
q r
s t
u v
w x
5 B 6 D
Exercise 7B Solutions of
simultaneous linear equations
1 a b
c d
e f
g h
i j
k l
m n
o p
y
x
x > y 2
0
2
2
Region required
y
x
y > 12x 24
0
24
2
Region required
y
x
3y x + 12
0
4
12
Region required
y
x
2y 4x + 6
0
3
1.5
Region required
y
x
x y < 10
0
10
10
Region required
0
y
x
y < x 4
0
4
4
Region required
0
y
x
2y > 4x 8
4
2
Region required
0
y
x
4
2
4x 2y 8
Region required
0
y
x
1
2x y > 1
1
Region required
0
y
x
4
4
y x 4 < 0
Region required
0 x
6
y + 2x 6 0
y
3
Region required
0 x
2
2y + 8x + 4 0
1
y
Region required
0 x
1
9x + 9y + 9 0
1
y
Region required
0 x
5
5x + 2y 10 > 0
2
y
Region required
0 x
2
y
2
(4, 2)
4
0 x
1
1
y
1
(2, 1)
0 x
5
1
5
(4, 1)
y
0 x
7
1
7
y
1
3
(2, 5)
0 x
6
3
6
(3, 3)
y
3
2
0 x
2
10
10
(3, 7)
y
2
3
0 x
22
1
11 3
(9, 4)
y
0 x
5
1
15
(27, 4)
1
y
0
x
9
1
3
1
y
(2 , 1 )
1
2
1
2
0 x
1
1 1
(0, 1)
y
0
x
1
8
8 1
(4 , 3 )
1
2
1
2
y
0
x
17
15
(2, 11)
5
2
3
y
7
1
2
0 x
14
8
2
2
3
5
3
5
(4, 4)
y
0 x
1
2
6 2
y
(3.6, 0.8)
0
x
7
7
y
3
1
2
1
2
5
9
1
3
2
1
3
( , )
0
x
y
1 1
2
1
2
(1 , 2)
7A
7B
648 A n s w e r s
a
n
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w
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s
q r
2 A 3 B
Exercise 7C Graphs of simultaneous
linear inequations
1 a b
c d
e f
2 a b
c d
e f
g h
i j
k l
m n
o p
q r
3 a B b A
Exercise 7D Graphs of systems of
linear inequations
1 a b
0
x
7
8
7
12
1
4
3
4
(2 , 3 )
5
2
3
1
y
0
x
y
1
2
1
2
(6 , 2)
1
2
1
7
3
1
3
2
y
0
x
1
Region required
1
y
0 x
1
1
2
Region required
y
0 1 x
2
2
Region required
y
0 x
1
3
2
Region required
y
0 x
4
2
6
Region required
y
0
3
x
8
6
Region required
y
0
x
2 3
2
1
Region required
y
0
x
4 1
3
2
Region required
y
0
x
4 3
4
1
Region required
y
0
x
10
10
10
Region required
y
0
x 5 4
5
5
Region required
y
0
x
2
3
3
Region required
y
0
x
3 6
3
7
1
2
Region required
y
0
x
3 5
5
2
Region required
y
0
x
2
2
14
1
4
3
Region required
y
0
x
1
7
8
2
Region required
y
0
x
4
3
3 4
Region required
y
0
x
12
2 1
2
Region required
y
0
x
2
2
1
2
Region required
y
0
x
1
1
Region required
1
1
y
0
x
3
6
2
10
Region required
y
0
x
1
4
3
Region required
1
y
0
x
2
1 1
Region required
y
0
x
6
4
6 4
Region required
y
0
x
4
3
Region required
y
0
x
6
2
Region required
A n s w e r s 649
a
n
s
w
e
r
s
c d
e f
g h
i j
k l
m n
o p
q r
s t
u v
w x
2 B 3 E 4 D 5 B
Exercise 7E Maximising and
minimising linear functions
1 a i, ii iii Maximum
value 4
b i, ii iii Minimum
value 0
c i, ii iii Maximum
value 15
y
0
x
7
5
Region required
y
0
x
2
1
2
3
2
Region required
y
0
x
1
6
5
3
Region required
y
0
x
2
4 4
Region required
y
0
x
4
2 1
Region required
y
0
x
9
2
3
Region required
y
0
x
6
1
Region required
1
2
y
0
x
2
1
1 2
Region required
1
y
0
x
2
1
1 3
Region required
1
2
y
0
x
2
1
1
2
Region required
1
y
0
x
4
2
1
1 3 5
Region required
y
0
x
2
1
3 5
Region required
1
y
0
x
2
3
3
Region required
y
0
x
2
2
1
1
2
Region required
y
0
x
1
1
1
1
2
Region required
y
0
x
8
4
2
4
Region required
0
y
x
1.5 3
1.5
4.5
Region required
0
y
x
16 7 5
8
3
1
2
Region required
0
y
x
8
5
8
3
Region required
0
y
x
4 3 2
6
Region required
0
y
x
9 3 2
9
1
8
Region required
0
y
x
1 3
7
3
Region required
0
y
x
4
6 (4, 6)
Region required
0
y
x
7
(7, 7)
Region required
0
y
x
(5, 5)
5
Region required
7C
7E
650 A n s w e r s
a
n
s
w
e
r
s
d i, ii iii Maximum
value 20
e i, ii iii Minimum
value 22
f i, ii iii Maximum
value 10.35
g i, ii iii Minimum
value 18
h i, ii iii Maximum
value 7
i i, ii iii Minimum
value 0
j i, ii iii Maximum
value 58
2 a i, ii iii Minimum
value 0
b i, ii iii Maximum
value 16
c i, ii iii Minimum
value 8
d i, ii iii Minimum
value 12
e i, ii iii Maximum
value 33.4
f i, ii iii Minimum
value 1.15
g i, ii iii Maximum
value 23.72
h i, ii iii Minimum
value 9.6
i i, ii iii Maximum
value 25
0
y
x
8 4
4
3
( , )
8
5
12
5
Region required
4
5
---
0
y
x
5 4
4
3
(1, 3)
3
4
Region required
1
2
---
0
y
x
10 14
4
( , )
2
1
2
182
15
8
15
Region required
0
y
x
9
10
6
7
1
2
Region required
0
y
x
4 3
(3, 9) 10
9
5
2
(3, )
2
5
( , 9)
Region required
4
5
---
0
y
x
5 2
(3, 2)
5
4
3
13
3
2
3
( , )
Region required
3

2
0
y
x
4 6
4
(6, 10)
10
9
6
5
(6, )
1
2
1
2
( , 10)
Region required
12

5
0
y
x
3 6 7
4
3
7
11
40
11
( , )
4
7
(6, )
Region required
0
y
x
8
8
2
(6, 2)
Region required
0
y
x
8 6
8
(6, 14)
Region required
0
y
x
4 4 8
4
(8, 12)
Region required
0
y
x
16 10
8
7
(10, 3)
(10, 7) (2, 7)
Region required
0
y
x
12 2
9
5
4
( , 5)
(5 , 5)
1
3
1
2
Region required
( , )
20
11
84
11
0
y
x
10 6
10
6
5
( , 6)
(4, 6)
( , )
30
11
80
11
6
5
Region required
0
y
x
4 4 14
7
8
(2 , 11 )
6
11
5
11
( , 7 )
4
15
7
15
14
Region required
0
y
x
9 3
4
3
3
9
(4, 1)
( , )
18
7
27
7
1
2
Region required
A n s w e r s 651
a
n
s
w
e
r
s
j i, ii iii Minimum
value 35.7
3 a A b D c D d C
Exercise 7F Solving linear
programming problems
1 a Style A = 5, Style B = 19 b $67
2 a Design A = 24, Design B = 4 b $146
3 a 35 rollerblades, 5 bicycles b $155
4 a Brand A = 20, Brand B = 260 b $1840
5 a 36 aerobic classes, 9 circuit classes b $252
6 a 20 2-person tents, 18 3-person tents b $984
7 a 15 bubble jet printers, 10 laser printers b $330
8 a 70 hectares of corn, 10 hectares of peas
b $14 200
9 a Natures Own = 80 litres,
generic brand = 10 litres b $212
10 a 255 tourists, 255 businesspeople b $8415
11 a 2 batches of 3-D puzzles, 3 batches of logic
games b $147
12 a 40 Arctic and 40 Cool Breeze
b $11 960 c Yes ($9560)
13 a Variables need to be dened in order to determine
how many bags of CP
1
and CP
2
will produce
maximum prot.
b 20x + 15y 300, 15x + 10y 210
c x 0, y 0 d P = 45x + 50y e $836
14 A 15 A
Exercise 7G Further applications of
linear programming
1 $69
2 a Rod A = 16, rod B = 10 b $13 800
3 a x = the number of type A uniforms produced;
y = the number of type B uniforms produced.
b 5x + 10y 480, 6x + 12y 600, 3x + 3y 450,
x 0, y 0
c P = 7x + 12y
d 80 type A uniforms and 10 type B uniforms
e $588
4 a 2 kg of Zest, 1 kg of Boom
b $15.72 (rounded down $15.70)
5 a 200 Gold Pass packages, 100 Classic packages
b $5000
6 a 1.6 tonnes at plant A, 4.2 tonnes at plant B
b $2532
Chapter review
1 D
2 a b
c
3 D 4 D 5 E
6
7 A
8
9 B
10 x + y 400, y 400, x 2y 400
11 x 0, y 0, x + y 300, x + y 600, x y 400
12 a b
13 C
14 a b $27.40
15 D
16 a 54 b 4
17 D
18 x = 0, y = 0, minimum = 0
19 A
20 x = 0, y = 3.4, maximum = 4080
21 B 22 B 23 D
24 a x = the number of runners produced,
y = the number of walking shoes produced
b x 400, y 350, x + y 900
c P = 12.5x + 10y
25 a 20 hectares of oats, 15 hectares of wheat
b $7600 c Yes
26 a 10x + 5y 70, 2x + 4y 28, 3x + 3y 36
b Yes, x 0 and y 0
We are dealing with items produced; therefore
x 0 and y 0.
0
y
x
2 6 4
9
7
5
(4, 3)
( , 7)
Region required
4
3
2
5
---
1
5
---
y
x 3 0
Region required
y
x
3
0
Region required
y
x
3
2
0
Region required
1 2 3 4
x
y
10
8
6
4
2
(3, 0)
y
x
4
8
3
0 6

5
Region required
0
y
x
2
C
A
B
O
5
(4, 5)
(2, 0) (0, 0)
3
1
2
(0, 2 )
1
3
2
1
3
Region required
0
y
x
6 4
4
3
A (0, 3)
B (0, 4)
D (4, 0)
(6, 0)
C
Region required
0
y
x
2
3
1
7
1
6
O D
C
A
B
O (0, 0)
A (0, 6)
C (2 , 1 )
D(1, 0)
1
2
2
3
2
3
B ( , 6 )
1
5
3
5
Region required
7F
7G
652 A n s w e r s
a
n
s
w
e
r
s
c
d C = 300x + 200y e $2600
27 a 5 kg C
1
, 2 kg C
2
b $27.50
28 a x 0; y 0; x 1600; y 200; x 2y;
x + y 1500; x + y 2100
b
c A(1000, 500) B(1400, 700) C(1600, 500)
D(1600, 200) E(1300, 200)
d P = 2.5x 3.5y + 45 150
e 1600 cake platters, 200 cheese platters and
300 fruit bowls
f $48 450
29 a x 0; y 0; x + y 80; 0.03x + 0.05y 2.5;
0.05x + 0.08y 4.5; 0.05x + 0.025y 3
b
c A(0, 120) B(40, 40) C(63 , 16 ) D(90, 0)
d C = 0.012x + 0.016y
e 63 g of Chicken Bites and 16 g of Fish Bites
per day
f $1.03 per day g C = 0.012x + 0.014y
h 63 g of Chicken Bites and 16 g of Fish Bites
per day
i $0.99 per day
CHAPTER 8 Networks
Exercise 8A Networks, nodes
and arcs
1 a ABDE b ABCE
2 a b 487 km c 254 km
d i ii 357 min iii 191 min
iv
v
3 a 179 km
b ii ii 277 min iii 143 min
c
d
0
y
x
7 12
14
14
12
7
A (0, 14)
B (2, 10)
C (10, 2)
D (14, 0)
Region required
Region required
A
B
D
E
C
(0, 2100)
2200
2000
1800
1600
1400
1200
1000
800
600
400
200
2
2
0
0
2
0
0
0
1
8
0
0
1
6
0
0
1
4
0
0
1
2
0
0
1
0
0
0
8
0
0
6
0
0
4
0
0
2
0
0
(0, 1500)
(1000, 500)
(1600, 500)
(1600, 200)
(1300, 200)
y
x
(1400, 700)
x
A
B
D
C
(0, 120)
(40, 40)
(63 , 16 )
1
3
2
3
(83 , 0)
1
3
(90, 0)
y
Region required
1
3
---
2
3
---
1
3
---
2
3
---
1
3
---
2
3
---
Ulawatu 0 120 100 209 254
Yallingup 120 0 220 118 160
Black Rock 100 220 0 109 154
Angourie 209 118 109 0 45
Bargara 254 160 154 45 0
Ulawatu 0 85 75 157 191
Yallingup 85 0 160 80 114
Black Rock 75 160 0 82 116
Angourie 157 80 82 0 34
Bargara 191 114 116 34 0
Re Pi Mo Ce VG Ma Ga
Re 0 62 58 104 108 147 179
Pi 62 0 41 65 46 85 123
Mo 58 41 0 46 76 126 121
Ce 104 65 46 0 30 90 75
VG 108 46 76 30 0 60 98
Ma 147 85 126 90 60 0 38
Ga 179 123 121 75 98 38 0
Re Pi Mo Ce VG Ma Ga
Re 0 47 44 84 81 119 143
Pi 47 0 25 45 34 75 100
Mo 44 25 0 40 59 97 99
Ce 84 45 40 0 20 58 59
VG 81 34 60 20 0 38 66
Ma 119 72 97 58 38 0 28
Ga 143 104 99 59 28 28 0
U1
Ya
BR
An
Ba
100
120
109
118
45
160
U1
Ya
An
Ba
BR
75
85
82
80
34
120
Re
Mo
Pi
VG
Ma
Ga
Ce
75
47
34
28
59
20
38
40
64
25
45
A n s w e r s 653
a
n
s
w
e
r
s
4 a b $3.30 c $3.80
5 C
History of mathematics
1 Men of Mathematics by E. T. Bell
2 The Nobel Prize and the Leroy P. Steele Prize
3 An algorithm is a procedure for solving a problem by
a number of steps.
Exercise 8B Minimal spanning trees
1 a b
c d
2 a Sturt b Rockdale c To Sturt
d
3 a 585 m b 245 m
c Check with your teacher.
4 a b
c d
5 a
b
c
6 53 km
7 53 km
8 a 68 km b $1.7 million
9 a $215 b $1740
10 B 11 D
Exercise 8C Shortest paths
1 a 20 b 38 c 74
d 45 e 28 f 139
2 a 165 km b 210 km c 210 km
3 a 37 b 90 c 32
d 72 e 30 f 44
4 a
b 80 min
1 6 2 9
3 1 4
5 AC, AD, DF, CF 6 $16 600
7 DCEF 8
9 $16 200 10 BAC
Exercise 8D Network ow
1 a
b
c
L
P B
T
K
2.40
1.50
1.50
1.80
1.80
2.00
2.40
A
B
D
C
4
5
8
A
B
C
D
4
5
4
A D
B
C
E
17
15
12
18
A D
B
C
E
30
15
20
15
Yule
Zenith
Rockdale
Urchin
Walga
Xavier
View
Pallas
Sturt
50
52
67
52
55
50
42
50
E
D
C
A
B
F
20
23
24
18
18
F D B
E C A
45 45
48 48
45
A B
C D E
F G
40
50
23 23
20 20
A
B
C
E
D
F
6
4
6
7
6
A
D
F
B
E
C
G
17
15
15
12
10
13
E
F
G
D
A
C
B
12 10
17
8
15
10
C A
E
D G K
B A I
H
J
5 5
5
8
5 5
5 5
8
5
B
A
C
E
D
70
30
50
20
25
60
30
25
D
ABCEF
CEF
AB
100
50
200
250 300
A B
D E C
50
100
E
250 200 100
S T U R
20
20
Q
15 12
12
5
10
O
M
R
N E
8A
8D
654 A n s w e r s
a
n
s
w
e
r
s
d
2
3
4
5 a
b
c
d
6
7
8 B
1 ADF 2 64 km
3 BCEF 4 45 km
5 30 6 30
7 10 8 80
9 45 10 72
Chapter review
1 a 7 b 10
2
3 Step 1 Choose any node at random and connect it to
its closest neighbour.
Step 2 Choose any unconnected node which is
closest to any connected node. Connect this
node to the nearest connected node.
Step 3 Repeat Step 2 until all nodes are connected.
4 ABECDFG
5
6 117 km
7 ADFG, 40
8 ACFIK, 70
9 a 20 b 15 c 35
10 a 70 b 70 c 70
a 23 b 16 c 16
a 6 b 3 c 3
a i 250 ii No b i 150 ii Yes
c i 24 ii Yes d i 15 ii No
From To Flow capacity
A B 4
A C 5
A D 3
B E 3
C B 2
C E 4
D C 2
D E 6
A B 4
A C 5
A D 3
B E 3
B C 2
C E 4
D C 2
D E 6
A B 4
A C 7
A D 3
A E 5
B E 3
C E 8
D B 2
D E 6
A B 4
A C 7
A D 12
A E 5
C F 7
D B 2
D E 6
D F 4
F E 8
8
8
3
F
2
8
8
6
5
D
H
G J
E
a 10 b 10 c 18 d 22
a i ii 300
b i ii 150
c i ii 29
d i ii 25
50
200
C
300 250
100
100
E
A B
D
50
100
E
250 200 100
100
S T U R
20
20
Q
15
5
12
12
5
10
O
M
R
N E
8
10
8
3
F
2
8
8
6
5
D
H
G J
E
B
A
C
E
D
11
12
8
7
5
4
A B C
D
E H I K
F G
A n s w e r s 655
a
n
s
w
e
r
s
11
12
CHAPTER 9 Critical path analysis
and queuing
Skills check
1
2 a 117 km b 160 km
Exercise 9A Critical path analysis
1 a b
c
d
2 a
b 49 minutes
3 a B b D
4 a 23 minutes b B, C, E, F, G
5 ACF
6 a B b D c A
7 ADG
8 a
b 61 minutes
9
10
11
12 a ADG
b Float (H) = 1, Float (J) = 3, Float (E) = 1,
Float (B) = 10, Float (C) = 1, Float (F) = 1
c Activity B can be delayed 10 minutes, activity C
can be delayed 1 minute, activity E can be
delayed 1 minute, activity F can be delayed
1 minute, activity H can be delayed 1 minute,
activity J can be delayed 3 minutes.
13 a AFGJK
b M, L, H, C, E, B, D
Exercise 9B Critical path analysis
with backward scanning
1 Critical path = BD; Float (E) = 1 min,
Float (C) = 1 min, Float (A) = 1 min
2 Critical path = BFG; Float (C) = 3 h,
Float (E) = 5 h, Float (A) = 3 h, Float (D) = 5 h
3 D
4 a 31 days b Critical path = ACEG
5 D
6 C
13
15
10
14
3
10
6
4
C
A B D F
E
13
15
10
13
10
16 3
14
3
10
6
4
2
C
G
A B D F
E
H
B
A
C
D
40
45
35
50
30
15
20
30
A
B
C
E D G
F
E B
C D
A J I
H
G F
P O N
R
Y
X Z
W V
U
Q
T S
A, 2
C, 4
F, 5
G, 10 H, 12
E, 3 D, 5
B, 20
A, 10 C, 12
F, 25
B, 15
E, 10 H, 10
G, 6
L, 8 K, 9
J, 11
M, 7
D, 8
25
0
41 52
61 49 35 22 10
Activity letter
Immediate
predecessor Time
A 7
B 9
C A 12
D B 8
E B 4
F C, D 9
Activity letter
Immediate
predecessor Time
A 3
B 4
C 5
D A 6
E B, F 5
F C 8
G D 18
H E 8
J E 6
Activity letter
Immediate
predecessor Time
A 10
B A 15
C A 12
D B 8
E C 10
F A 25
G D, E, F 6
H D, E, F 10
J G 11
K J 9
L G 8
M H, L 7
9A
9B
656 A n s w e r s
a
n
s
w
e
r
s
7 a
b c 85 minutes
d
8 C
9 28%
10 a 29 b BEJN
11 a 35
b CFJMQ
c 3
12 a
b Float (D), Float (E) = 2, Float (G), Float (H) = 2
1 C
2 The earliest starting time of an activity is the
earliest time by which all prior activities can be
completed.
3 The latest start time of an activity is the latest time
the activity can start if the project is not to be
delayed.
4 Float time = latest nish time earliest start time
activity time
5
6 6
7 14
8 9
9 3
10 B, F, D
Exercise 9C Queues: one service point
1 a
b 5 min c 9 min d 2 min
e 2.28 min f 1.5 min
2 a
3 C 4 B
5 a
b 2 c 4 min
Activity
letter Activity
Immediate
predecessor Time
A Collect parts 12
B Paint frame A 35
C Assemble brakes A 16
D Assemble gears B 20
E Install brakes C 12
F Install seat C 5
G Final assembly D, E 18
B, 35 D, 20
E, 12
C, 16
F, 5
G, 18
A, 12
ABDG
B, 35
D, 20
E, 12
C, 16
F, 5
G, 18
A, 12
85 85 55 28
67 67
47 47
12 12 0 0
26
26
A, 15
E, 5
G, 9
P, 10
N, 6 J, 7
H, 5
K, 5
L, 3
M, 4
Q, 5
D, 3
F, 9
X, 3
B, 4
C, 10
0 0 10 10
4 11 13 16
24 25
35 35 26 26 19 19 16 15
24 27 30 30
D, 7
J, 2 E, 5 F, 3
A, 4
B, 7
C, 3
G, 3 H, 5
Time
Customer
served Arrivals
Length of
queue
People in
queue
8 D 4 E F G H
9 D I 5 E F G H I
10 E 4 F G H I
11 E J 5 F G H I J
12 F K 5 G H I J K
13 G 4 H I J K
14 G 4 H I J K
15 G L 5 H I J K L
16 H 4 I J K L
Time
Customer
served Arrivals
Length of
queue
People in
queue
10 D 4 E F G H
11 E 3 F G H
12 F 2 G H
13 G 1 H
14 G 1 H
15 G 1 H
16 H 0
Time
Customer
served Arrivals
Length of
queue
People in
queue
0 A 0
1 A 0
2 A B 1 B
3 B 0
4 B C 1 C
5 B 1 C
6 C D 1 D
7 C 1 D
8 C E 2 D E
9 D 1 E
10 D F 2 E F
11 D 2 E F
12 E G 2 F G
B, 4
F,2
C, 6
A, 5
D, 8
E, 5
0 0
6 9
14 14
6 6
4 4
A n s w e r s 657
a
n
s
w
e
r
s
6 a 3 min b Yes
c
7 a 2 min b 3, 10 c 2 min
d 4 min e 3 f 1
g F h 3 min and 6 min
i
(ix)
8 9
10 17 min
1 300 2 Greater than 1.5 minutes
3 2 min 4 1 min
5 3 min 6 5 min
7 5 8 D, E, F
9 F, G, H, I 10 3
Exercise 9D Queues: multiple service
points
1 a 234 s (3 mins 54 s)
b 3
2 4 3 Yes
4 a 4 had been completely served.
b 2 c 9 d 7 e 3
5 a
6 a 2 min
b 5 min
c
d 2 min
7 A 8 B
9
Time
Customer
served Arrivals
Length of
queue
People in
queue
0 A 0
3 A B 1 B
6 B C 1 C
9 B D 2 C D
12 C E 2 D E
15 C F 3 D E F
18 D G 3 E F G
Time
Customer
served Arrivals
Length of
queue
People in
queue
0 A 0
1 A B 1 B
2 B 0
3 B C D 2 C D
4 B 2 C D
5 C 1 D
6 C E F 3 D E F
7 C 3 D E F
8 D 2 E F
9 D 2 E F
10 E 1 F
11 E 1 F
12 E G 2 F G
13 E 2 F G
14 F 1 G
15 F 1 G
16 F 1 G
17 G 0
G
H
I
J
K
L
F
B
A
0
5
2
1 3
4 6
7
8
9
10
11
12
13
14 16
15
Minutes
C
u
s
t
o
m
e
r
E
D
C
G
H
F
B
A
0
5
2
1 3
4 6
7
8
9
10
11
12
13
14 16
15
Minutes
C
u
s
t
o
m
e
r
E
D
C
Time Teller 1 Teller 2 Arrivals

Length of
queue
9 G H J, K 3
10 G H L 4
11 G H 4
12 G H M 5
13 I J 3
14 I J N 4
15 K L 2
16 K L O 3
17 K L 3
Time Service 1 Service 2 Arrivals
People in
queue
Length of
queue
0 A B E C, D, E 3
1 C B D, E 2
2 C D F E, F 2
3 C D E, F 2
4 E D G F, G 2
5 E F G
Time Nurse 1 Nurse 2 Arrivals
People in
queue
Length of
queue
0.00 A B
0.45 A B C C 1
1.30 A B D C, D 2
2.00 C D 0
2.15 C D E E 1
3.00 C D F E, F 2
3.45 C D G E, F, G 3
4.00 E F G 1
4.30 E F H G, H 2
5.15 E F I G, H, I 3
6.00 G H J I, J 2
6.45 G H K I, J, K 3
7.30 G H L I, J, K, L 4
8.00 I J K, L 2 9C
9D
658 A n s w e r s
a
n
s
w
e
r
s
Chapter review
1 C 2 D 3 C 4 D
5
6
The ret can be completed in 23 hours.
7
8
9 a
b 5 min
c 3 min
d (2 + 1 + 3 + 1 + 1 + 2) 6 = 1.67 min
e (0 + 2 + 0 + 1 + 0 + 2 + 1 + 0 + 2 + 1) 10
= 0.9 min
10
11
12 a Inter-arrival time = 0.75 s
b Number of service points = 40
13 a Inter-arrival time = s = 3.6 s (less than
service time)
b 3
14 a
b 1 min
c (0 + 0 + 0 + 1 + 0 + 1 + 1 + 0 + 1 + 1 + 1 + 0 +
1) 13 = 0.54 min
d (0 + 1 + 2 + 3 + 3 + 4 + 3 + 4) 8 = 2.5 min
Activity
letter Time
Earliest
start
time
Earliest
nish
time
Float
time
Immediate
predecessor
A 5 0 5 0
B 5 0 5 0
C 4 5 11 2 B
D 8 5 13 0 A
E 1 13 19 5 D, G
F 1 14 20 5 E
G 2 9 13 2 C
H 3 13 16 0 D
J 4 16 20 0 H
K 3 20 23 0 F, J
Time Customer Arrivals
People in
queue
Length of
queue
0 A B B 1
1 A B 1
2 B C, D C, D 2
3 C E, F D, E, F 3
4 C D, E, F 3
5 C G D, E, F, G 4
6 D H, I E, F, G,
H, I
5
7 E F. G. H. I 4
8 F J F, G, H,
I, J
4
9 F K G, H, I,
J, K
5
D, 8 E, 1
H, 3
J, 4
F, 1 K, 3
G, 2
A, 3
B, 5
C, 4
D, 8 E, 1
H, 3
J, 4
F, 1 K, 3
G, 2
A, 5
B, 5
C, 4
23 14 20 13 5 0
5 9 16
D, 8 E, 1
H, 3
J, 4
F, 1 K, 3
G, 2
A, 5
B, 5
C, 4
0 0 5 5 13 13 14 19 20 20 23 23
5 7 9 11 16 16
Time
Customer
served Arrivals
People in
queue
Length of
queue
0 A
1 A B B 1
2 B C C 1
3 B D C, D 2
4 C E D, E 2
5 C F D, E, F 3
6 D G E, F, G 3
7 D H E, F, G, H 4
8 E I F, G, H, I 4
Time
Point
1
Point
2 Arrivals
People in
queue
Length
of queue
0 A B C, D, E C, D, E 3
1 A C F, G D, E, F, G 4
2 A D H E, F, G, H 4
3 E D I, J F, G, H, I, J 5
4 E F K G, H, I, J 4
5 G H L I, J, L 3
6 G H M, N I, J, L,
M, N
5
7 G I O J, L, M, N, O 5
G
H
I
J
K
F
B
A
0 5 2 1 3 4 6 7 8 9
Time hours
T
a
s
k
E
D
C
3600
1000
------------
A n s w e r s 659
a
n
s
w
e
r
s
15 a
b
c The room would quickly become crowded.
d Five people per minute
CHAPTER 10 Probability and the
binomial distribution
Skills check
1 a 6 b 2 c 52 d 36
2 a b c
d e f
3 a 0.04 b 0.03 c 0.54
d 0.72 e 0.67 f 0.125
4 a 0.125 b 0.188 c 0.75
d 0.154 e 0.684 f 0.058
5 a Less than
b Greater than or equal to
c Greater than
Exercise 10A Compound events
independent events
1
2
3 S = {(1, 1), (1, 2), (1, 3), (1, 4), (1, 5), (1, 6)
(2, 1), (2, 2), (2, 3), (2, 4), (2, 5), (2, 6)
(3, 1), (3, 2), (3, 3), (3, 4), (3, 5), (3, 6)
(4, 1), (4, 2), (4, 3), (4, 4), (4, 5), (4, 6)
(5, 1), (5, 2), (5, 3), (5, 4), (5, 5), (5, 6)
(6, 1), (6, 2), (6, 3), (6, 4), (6, 5), (6, 6)}
P(9) = =
4 7 is mostly likely, P(7) = =
5
6 {(H, H, H), (H, H, T), (H, T, H), (H, T, T), (T, H, H),
(T, H, T), (T, T, H), (T, T, T)}
7 D
8 B
9 =
10
0.7 0.45 0.5 = 0.1575
11 0.3 0.55 0.5 = 0.0825
12
P(2 Tails) = 0.2025
13
a There are 8 paths.
14 E
15
a 0.12 = 12% b 0.32 = 32%
16 b, d, e
17
P(P F) = 0.4 0.25 = 0.1
a b
a 0.2646 b 0.0204 c 0.1764
a b c d
Arachnids
(Spiders)
Arachnids
(Scorpions)
Butterflies
(Rainforest)
Butterflies
(Temperate)
Moths
Tour
information
Glow-
worms
(Caves) Exit
Entry
A, 12 B, 13 C, 12 E, 4
D, 2 G, 6
H, 6
I, 5 J, 12
F, 2
1
12
------
2
3
---
5
6
---
1
36
------
1
54
------
5
16
------
1
4
---
1
2
---
1
2
---
4
36
------
1
9
---
6
36
------
1
6
---
1
8
---
3
8
---
7
8
---
3
8
---
1
6
---
1
6
---
1
6
---
1
216
---------
N
e
w
Y
o
rk
u
p
N
ew
Y
o
rk
d
o
w
n
T
o
k
y
o
u
p
Tokyo up
Tokyo down
T
o
k
y
o
d
o
w
n
A
ustralia up
Australia up
Australia up
Australia up
A
ustralia dow
n
Australia down
Australia down
Australia down
0.7 0.45 0.5 = 0.16
0.7 0.45 0.5 = 0.16
0.7 0.55 0.5 = 0.19
0.7 0.55 0.5 = 0.19
0.3 0.45 0.5 = 0.07
0.3 0.45 0.5 = 0.07
0.3 0.55 0.5 = 0.08
0.3 0.55 0.5 = 0.08
0.55 0.55 = 0.3025
0.45 0.45 = 0.2025
0.45 0.55 = 0.2475
0.55 0.45 = 0.2475 H
H
T
H
T
HH
HT
TH
TT
0.55
0.45
0.55
0.45
0.55
0.45
T
H
H
T
H
T
H
T
H
T
T
H
T
T
H
P(H, H, H) =
P(H, H, T) =
P(H, T, H) =
P(H, T, T) =
P(T, H, H) =
P(T, H, T) =
P(T, T, H) =
P(T, T, T) =
1
8
1
8
1
8
1
8
1
8
1
8
1
8
1
8
0.6 0.2 = 0.12
0.6 0.8 = 0.48
0.4 0.2 = 0.08
0.4 0.8 = 0.32
W
B
B'
B
B'
WB
WB'
MB
MB'
0.6
0.8
0.2
0.8
0.2
0.4
M
P
T
S
0.4 0.3 = 0.12
0.4 0.25 = 0.10
0.4 0.45 = 0.18
PB
PF
PL
B
L
F
0.25 0.3 = 0.075
0.25 0.25 = 0.063
0.25 0.45 = 0.112
SB
SF
SL
B
L
F
0.35 0.3 = 0.105
0.35 0.25 = 0.088
0.35 0.45 = 0.157
TB
TF
TL
B
L
F
10A
10A
660 A n s w e r s
a
n
s
w
e
r
s
18 a P(no drug) = = 0.35
P(small dose) = = 0.40
P(large dose) = = 0.25
b, c, d
e Although few patients were tested, it appears
that a greater percentage (80%) of those given
a large dose of the drug recovered, whereas
a much smaller percentage (29%) of those not
given the drug recovered. 20% of people tested
were given a large dose of the drug and
recovered, 15% of people tested were given a
small dose and recovered, whereas only 10%
of people were not given the drug and recovered.
So it could be said that a patient is more likely
to recover if the drug is taken.
Exercise 10B Compound events
1 a, d, e, g
2
3
4 = 0.517
5 E
6 a = = b
7 a = b = c =
8 a 0.258 b 0.449 c 0.865
9 a 0.037 b 0.296 c 0.667 d 0.333
10 a 0.32 b 0.46 c 0.31
11 a 0.4999 b 0.9997 c 649 773
Exercise 10C Compound events
Venn diagrams
1
2 a = 0.275 b 0.4
3
The events are mutually exclusive and the Venn
diagram could have been drawn as two circles which
did not overlap.
4 0.18
5 0.9009
6 C
7
8 0.27, much higher probabilities of winning with
roulette
9 36
10 9
1 2 3 0.36 or 36%
4 0.16 or 16% 5 0.48 or 48% 6
7 8 4 9 14
10
Exercise 10D The binomial
distribution using Pascals triangle
1 a 1 7 21 35 35 21 7 1
b 1 9 36 84 126 126 84 36 9 1
2 a 1 5 10 10 5 1
b 1 7 21 35 35 21 7 1
3 a 1 b 4 c 70 d 1 e 110
4 a 0.0256 b 0.1176 c 0.125
d 0.0132 e 0.0720 f 0.0156
5 a 0.0179 b 0.0284 c 0.3456
6 a 0.2344 b 0.3125
7 a 0.2322 b 0.8936
8 a 0.4019 b 0.8038
9 a 0.5 b 0.2734
10 a 0.5 b (0.5)
10
11 a 0.25 b (0.75)
6
c 0.0330
12 a 0.2090 b 0.0413
13 0.1342
a = b c
a b = c d e 1
a 4 b 5 c 8
14
40
------
16
40
------
10
40
------
0.35 0.286 = 0.10
0.35 0.714 = 0.25
0.40 0.375 = 0.15
0.40 0.625 = 0.25
0.25 0.80 = 0.20
0.25 0.20 = 0.05
N
NR
NR'
SR
SR'
LR
LR'
R
R'
L
S
R
R'
R
R'
4
52
------
1
13
------
6
13
------
15
52
------
16
45
------
35
45
------
7
9
---
29
45
------
19
45
------
16 76 +
178
------------------
59 13 +
148
------------------
72
148
---------
18
37
------
19
37
------
12
36
------
1
3
---
24
36
------
2
3
---
15
36
------
5
12
------
31 7 o'clock 11 o'clock
55 80 34
S
55
200
---------
IPT
16
TS
0 31 29
S
a 37% b 63%
S
0.51
A
0.18 0.08 0.23
S
A 0.9009 B
0.0009
0.0291
0.0691
S
A
14
4
6
7
3
0
2
C
B
S 10
3
8
9
5
8
4
N
C
1
6
---
1
6
---
1
26
------
7
13
------
1
20
------
A n s w e r s 661
a
n
s
w
e
r
s
Investigation Pascals triangle
1
2 The triangle is symmetrical about a vertical line
through the centre.
3 Number of entries in row = row number + 1
4 Odd-numbered rows have an even number of
entries. Even-numbered rows have an odd number
of entries.
5 An odd number of trials has two middle numbers of
the same value.
An even number of trials has one middle number.
6 Sum of numbers in row = 2
row number
(2 to the power
of the row number)
7 Yes. 11
3
= 1331
Yes. 11
4
= 14 641
8 They are square numbers.
9 Fibonaccis sequence
10 Use the diagonal
1
3
6
10
15
11 The triangular numbers are located in the diagonal
shown in question 10.
12 Sum of 10 lies in the position below the 4 to
the right. This pattern continues. The same
pattern continues for the numbers in the second
diagonal.
13
s = 2
r + 1
1
14 a Multiples of 2
b Multiples of 3
History of mathematics Blaise
Pascal
1 16 years old
2 A calculating machine
3 The Puy de Dme mountain
4 For probability, permutations and combinations
5 A brain tumour and stomach ulcer
Exercise 10E Binomial probabilities
through tables
1 a 0.0008 b 0.9527 c 0.5793 d 0.9907
2 a 0.8281 b 0.9389 c 0.9887 d 0.9532
3 a 0.5000 b 0.6964 c 0.4142 d 0.0000
4 0.8684
5 a 0.6550 b Between 0.6167 and 0.9666
6 a 0.6230 b 0.5881 c 0.5000 d 0.0781
e 0.0139 f 0.0034
7 a 0.0404 b 0.9536 c 0.9940
8 a 0.2
b i 0.2013 ii 0.3222 iii 0.1074
c The probability of this is very slight; there may
be some error in the sampling technique.
9 0.1275
10 a b c Approximately 0.2
Row (r) 0 1 2 3 4 5 6
Sum (s) 1 3 7 15 31 63 127
1 Row 0
1
1
1
1
1
1
1
1
1
1 10 45 120 210252210120 45
9 36 84 126126 84 36
8 28 56 70 56 28
7 21 35 35 21
6 15 20 15 6
5 10 10
4 6
3 3
4
5
7
8
9
10
1
1 2
1
1
1
1
1
1
1
1
Row 1
Row 2
Row 3
1
1
1
1
1
1
1
1
1
1
1 10 45 120 210 252 210 120 45
9 36 84 126 126 84 36
8 28 56 70 56 28
7 21 35 35 21
6 15 20 15 6
5 10 10
4 6
3 3
4
5
7
8
9
10
1
1 2
1
1
1
1
1
2
3
5
1
1
1
1
1
21
13
89
34
8
55
1 + 3 = 4 = 2
2
3 + 6 = 9 = 3
2
6 + 10 = 16 = 4
2
1
3
---
1
3
---

10
10B
10E
662 A n s w e r s
a
n
s
w
e
r
s
1 2 1 4 6 4 1
3 p = , q = , n = 4 4 4p
3
q
5 0.0154 6 0.3602 or 36% 7 0.9408
8 0.0592 9 0.0139 10 0.0026
Chapter review
1 D 2 D 3 D
4 a
b c d
5 a b
6 0.3975
7 0.4928
8 0.9999
9
10 C 11 D
12 a 0.5625 b 0.375 c 0.843 75
13 E
14 a i ii
b i ii
15 B
16 6
17 P(both A and B) = 0.25
18 E
19 a b
20 E
21 a Two outcomes, success or failure, same event
repeated
b Tossing a coin 6 times
c Rolling a die and noting the uppermost face
22 a 0.402 b 0.032
23 0.016
24 a 0.39 b 0.39 c 0.78
25 a 0.8725 b 0.8042
26 a 0.2 b 0.3704
27 a 0.12 b 0.2517
CHAPTER 11 The normal
distribution and games of
chance
Skills check
1 Answers will vary. Check with your teacher.
2 a 6.7 b 2.4 c 4.7 below the mean
3 Distribution b
4 45 to 55
5 a The value of x is larger than 40.
b The value of x is less than or equal to 40.
c The value of x is larger than 20 and less than 30.
Exercise 11A z-scores
1 3
2 2
3 a 0 b 1 c 2 d 3 e 1
4 a 10.5 b 13.7 c 16.9 d 7.3 e 0.9
5 0.27
6 1.5
7 a 0.48 b 1.44 c 0.08 d 2.24 e 2.8
8 a 10.3 s b 10.58 s c 10.37 s
d 9.88 s e 10.251 s f 10.524 s
9 a = 19.55, SD = 1.76 b 1.68
b = 56, SD = 20.1
c i 0.3 ii 2.2 iii 2.0
11 C
12 B
13 D
14 a = 64.7, SD = 11.4
b Highest score z = 2.66, Lowest score z = 1.73
15 English 1, Mathematics 1.31, Biology 1.5,
Legal studies 2, Drama 0.67, Music 0.8
Sum 2 3 4 5 6 7 8 9 10 11 12
Prob.

a 0.5 b c
1
4
---
1
6
---
5
6
---
1
36
------
2
36
------
3
36
------
4
36
------
5
36
------
6
36
------
5
36
------
4
36
------
3
36
------
2
36
------
1
36
------
1
2
---
2
9
---
1
9
---
1
8
---
3
8
---
A 0.56
A 0.56
A 0.56
P(A, A) = 0.56 0.56
= 0.3136
P(A, SA) = 0.56 0.44
= 0.2464
P(SA, A) = 0.44 0.56
= 0.2464
P(SA, SA) = 0.44 0.44
= 0.1936
SA 0.44
SA 0.44
SA 0.44
15
36
------
32
36
------
25
49
------
20
49
------
20
42
------
20
42
------
10
Blonde
hair
1
Blue
eyes
4
5
S
0.05 0.25 0.25
A
S
B
18 12 13
Yes No
S
30
43
------
10 a Amount ($) Class centre Frequency
0<20 $10 2
20<40 $30 8
40<60 $50 19
60<80 $70 15
80<100 $90 6
x
x
x
A n s w e r s 663
a
n
s
w
e
r
s
Exercise 11B Comparison of scores
1 a English 1.25, Maths 1.33
b Maths mark is better as it has a higher z-score.
2 2nd test, Barbaras z-score was 0.33 compared to
0.5 in the rst test.
3 C
4 E
5 Course A, z-score of 0.8 compared to 0.75 on
course B
6 a Atlanta 0.44, Sydney 1
b In Atlanta because of the lower z-score
7 D
8 B
9 a Mathematics = 59.5, SD = 17.9
Chemistry = 59.6, SD = 16.8
b Mathematics 0.25, Chemistry 0.20. So
Mathematics is the better result.
10 Kory is the better candidate with a z-score of 1.5
compared with 0.875 for Ricardo.
1 2
2 2
3 1.03
4 2.95
5 One standard deviation above the mean
6 Two standard deviations below the mean
7 50
8 8
9 English 1.25, Maths 1.4
10 Maths
Exercise 11C Distribution of scores
1 a 68% b 95% c 99.7%
2 a 68% b 95% c 99.7%
3 95%
4 16%
5 a 68% b 16% c 0.15%
6 21.1 and 33.9 years
7 a 68% of the values have a z-score between 1
and 1.
b 95% of the values have a z-score between 2
and 2.
c 99.7% of the values have a z-score between 3
and 3.
8 B
9 A
10 0.15%
11 a 16% b 16%
12 a 95% b 16% c 34%
d 15.85% e 83.85%
13 a 95 g to 105 g b 92.5 g to 107.5 g
14 163 cm 181 cm
15 Faulty, as the one chosen has a z-score greater than 3.
16 2.6 kg 5 kg
Exercise 11D Standard normal
tables
1 a 0.8413 b 0.9192 c 0.9641
d 0.1587 e 0.0446 f 0.2417
g 0.6826 h 0.9544 i 0.9974
j 0.1359 k 0.0215 l 0.8664
2 a 0 b 0.75 c 1 d 1.5
3 a 0.5 b 0.5 c 1.3 d 1.2
4 a 0.8413 b 0.9452 c 0.5
d 0.0013 e 0.3413 f 0.8185
5 a 0.6406 b 0.8577 c 0.5 d 0.3594
e 0.2812 f 0.6188 g 0.0509 h 0.0554
6 a 0.5000 b 0.1335 c 0.0294 d 0.8665
7 a 0.7486 b 0.9082 c 0.2514 d 0.6568
8 a 75% b 37 or 38 c 45
9 a i 0.9332 ii 0.8413 iii 0.1210
b 22.6%
10 a 0.7881 b 0.3446 c 0.1151
d 0.7881 e 0.5403
11 4.75%
12 0.38%, assuming mass to be normally distributed
Exercise 11E Odds
1 a $105 b $105 c $429 d $300
e $15 f $33.33 g $66.67
2 a $140 b $175 c $507 d $420
e $60 f $83.33 g $216.67
3 a b c
d e f
4 a 2:1 b 4:1 c 3:2 on d 5:2
e 7:5 f 2:1 on g 6:4 h 11:9
5 a Evens b 5:1 c 3:1
d 12:1 e 3:1
6 a 2:1 b 3:1 c Evens
d 7:5 e 2:1 on f 5:2 on
7 a $36 000 b i $13 500 ii $22 500
8 a $160 b $71.11 c $80
Exercise 11F Two-up
1 2 3
4 5 6
7 a TH, TH, TH, TH b
8
9 a b c d e 0.48
10 Not quite, probability of winning = 0.48
Exercise 11G Roulette
1 a b
2 a 19:18 b 31:6
c No, slightly lower
3 a $60 b 0 c $200 d $80
4 Nothing happens except when the ball lands on 0,
then he loses both bets.
Exercise 11H Common fallacies in
probability
1 a b c
2 a i 0.32 ii 0.24
b Her chances of winning any match remain 0.75.
4 a Events are not independent.
b How many people in this group own surfboards?
x
x
4
5
---
1
4
---
3
5
---
2
7
---
3
10
------
2
3
---
1
4
---
1
4
---
1
2
---
1
2
---
1
8
---
1
16
------
1
16
------
1
32
------
1
8
---
1
16
------
1
32
------
1
64
------
18
37
------
6
37
------
1
16
------
1
32
------
1
2
---
11A
11H
664 A n s w e r s
a
n
s
w
e
r
s
Exercise 11I Mathematical
expectation
1 3.6 2 3.1
3 15.6 years 4 40 cents
5 $2.50 6 $0.62
7 13.5 cents 8 $1.60
9 7
1 Very probable 2 2.5%
3 970 mL 4 0.9505
5 0.0495 6 0.0495
7 0.9010 8
9 $500 10 $1 loss
Chapter review
1 2
2 a 0 b 1 c 2 d 3 e 1
3 1.87
4 a 0.17 b 1.83 c 3 d 1.75 e 2
5 a = 1130, SD = 334.2
b i 0.39 ii 2.05 iii 2.62 iv 1.13 v 3.07
6 a = 20.1, SD = 2.1
b Highest = 1.86, Lowest = 1.95
7 a 1.5 b 1 c Physics, higher z-score
8 a Geography: 0.8, Business studies: 0.53
b Business studies: higher z-score
9 Numeracy: lower z-score
10 a 68% b 95% c 99.7%
11 a 68% b 95% c 99.7%
12 a 34% b 47.5% c 2.5%
d 0.15% e 97.35%
13 Faulty, as it is more than three standard deviations
from the mean.
14 a 0.9032 b 0.9918 c 0.1587
d 0.0668 e 0.2075
15 a 0 b 1 c 0.83 d 5.33
16 a 0.5 b 0.8413 c 0.1587
d 0.0475 e 0.1293 f 0.3779
17 a 0.5 b 0.8413 c 0.7357 d 0.2342
18 a Horses 5 and 6
b Horses 1, 2 and 5
19 Test this by simulation on a computer.
20 a Same b Same
21 a i 0.49 ii 0.25 iii 0.25
b No
22 a $1.67
b About $2.65 (if the operators percentage is
based on this gure)
2
5
---
x
x
I n d e x

665

activity charts 45865
actual interest rate 47
additional rule of probability 5034
air navigation 3068
angle of elevation 294
annuity
calculation 8991
calculator 912
compound interest formula 87
future and present value 8791, 99
values using tables 925, 99
appreciation 56
inflation and 5960
modelling 602
arcs 32831, 452
area
computer, using 325
pace length, using 325
polygons 3224
triangles 31821, 373
assets 63
bank savings accounts 1425
daily balances 1434, 168
minimum monthly balances 1423, 168
number of days between dates, calculating 1445
bearings 267, 26971, 309, 336
cross bearing fix 2738
fix-by-four-point bearing 286
benchmark 348
temporary 348
bias 187, 241
questionnaire design 188
sampling 1889
statistical interpretation 18990
binomial cumulative distribution tables 5323
binomial distribution 51422
binomial probabilities through tables 5279
bonds 13740, 167
bow, the 285
boxplots 20511, 241
brokerage 154
cadastral maps 367, 373
casino games 5713, 580, 582
census 176, 177
contingency tables from data 2001
closed half-plane 383
coastal lights 293
cocked hat 74
commission 148
compass
error 265
errors of deviation 265
magnetic variation 2667
types 265
using 2658, 309
compass bearings 26971
compass rose 2667
complementary events 494
compound events 4938
independent events and 4938, 534
mutually exclusive events 5014, 534
Venn diagrams 50712, 534
compound interest 2, 23, 51
annuity 87
calculation of 235
formula 2732
investments, determining interest rate in 401
simple interest calculation 24
spreadsheets 345
compound interest functions
comparing simple interest functions using graphics
calculators 413
comparing simple interest functions using
spreadsheet 445
graphing 358
compounded value 27
Consumer Price Index (CPI) 56, 578
contingency tables 193201, 241
contour interval 360
contour lines 360
contour maps 3602
corner point method 401, 404
cost of a loan 11922
critical path 464
critical path analysis
activity charts and networks 45865, 484
backward scanning 4679, 484
forward scanning 4612
cross bearing fix 2734
daily balance 143
data
comparison of data sets 2245
continuous 215
discrete 215
interpretation of 21526
relationships between data sets 21923
datum line/surface 348
dead reckoning/deduced reckoning 2913
debentures 13740, 167
declining balance/diminishing value depreciation 657,
735, 99
straight line depreciation comparison 834
depreciation 56
declining balance/diminishing value 657, 735, 99
modelling 637, 99
rates of 77
666

I n d e x

depreciation

(continued)

straight line 64, 702, 99
tables 7882, 99
direct measurement 540
directed graphs/networks 461
distributions
binomial 51422
normal 540, 582
rectangular 514
skewed 2067
symmetric 205
uniform 514
dividend 154, 165
dividend yield 154
doubling the angle on the bow 2858
Dow Jones Industrial Average 166
dumpy level 347
Earth geometry 2513, 309
Earth, representing in two dimensions 2545
effective interest rate 47, 119
equations
simultaneous linear 38790
equator 251
extrapolate 65, 160
face/par value 154
field map by survey 331
financial calculations 289
first in first out (FIFO) 472
fix-by-four-point bearing 286
fixing position 27378
flashing lights 293
flat rate interest 1069, 167
calculator 11112
flat rate loan 119
float time 464, 468
floats 154
flow capacity 445
excess 447
four-point bearing 286
frequency distributions 540
future value 27
games of chance 56769, 5714, 580, 582
Gaussian distribution 541
general addition rule for probability 51011
Global Positioning System (GPS) 2989, 331
Goods and Services Tax (GST) 148
graphics calculator tips
binomial probabilities, calculating 51921
calculating simple interest 67, 89
comparing investments 256
distribution of scores 5545
effective interest rates, calculating 4850
financial calculations 289
linear inequations, graphing 3845
number of days between dates, calculating 1445
simultaneous linear equations, solving 3889
simultaneous linear inequations, solving 3945

graphs
extrapolating information 160
interpolating 160
linear inequations 3812
simultaneous linear inequations 3916
systems of linear inequations 3979, 419
great circles 251
grid references 3545
gyro compass 265
hand bearing compass 265
harbour lights 293
Herons formula 3201
histograms 20511, 241
estimating probabilities 21516
interpreting 21719
home loans 11214, 167
calculator 11314
cost of 11922, 167
reducing balance 112
repayment schedule using spreadsheet 1256
repayments 12737, 167
researching 124
independent events 4938, 534
multiplication rule 493
tree diagrams 4968
industrial shares 1656
inflation 56, 99
appreciation and 5960
inflow 445
inter-arrival time 473
interest 2, 5
compound 2, 235, 278
doubling money 3840
flat rate 1069, 167
investment and 34
simple 59, 13, 17
interest rates 2, 1215, 51
determining in compound interest investments 401
nominal and effective 4750, 51
interpolate 160
interpretation of data in practical situations 21526, 241
intersection method of plane table surveying 3368
investment
comparing 256
determining interest rate 401
interest earned 34
stock markets, in 1537
investment bonds 13840
Keno 580
knot 25861, 309
land measurement 316
levelling 3479
plane table surveying 3368, 3424
surveying around obstacles 333
surveying without obstacles 3269
laser levels 347
I n d e x

667

last in first out (LIFO) 472
latest finishing time 468
latest starting time 464
latitude, lines of 251
levelling 3479
lighthouses 2934
line of best fit 160
line of collimation 347
linear 380
linear functions
maximising and minimising 4015
linear inequations, graphs 3812, 3916, 419
systems of 3979
linear programming 3801, 4079, 419
further applications of 41316
loans
cost of 11922, 167
flat rate interest 1069
home loans 11214
period of 1215, 51
principal 1215, 51
longitude, lines of 251
magnetic compass 265
magnetic north 266
magnetic variation 266
mapping 331
air and space, from 370
maps
cadastral 3678, 373
contour 3602
orthophoto 370
topographic 3525, 373
market price 154
mathematical expectation 5778, 582
mean 542
Mercators projection 255
meridians 251
minimum spanning trees 4335, 438, 452
minute 331
money, doubling 3840
mutually exclusive events 5014, 534
calculating probabilities for 5023
Nash, John Forbes 4356
nautical mile 25861, 309
navigation 250
accurate position description 256
air 3068
compass bearings and reverse bearings 26971
compass, using 2658
dead reckoning 2913
determining position by 30910
doubling the angle on the bow 2858
Earth geometry 2513, 309
Earth, representing in two dimensions 2545
fixing position 2738
Global Positioning System (GPS) 2989, 331
knot 25861, 309
lighthouses and 2934
Mercators projection 255
nautical mile 25861, 309
running fix 2835
transit fix 2812
negatively skewed 206
network flow 4459, 452
networks 428, 452
activity charts and 45865
backward scanning 4679
earliest start time (EST) 4612
float time 464
forward scanning 4612
latest start time 464, 468
nodes and arcs 42831, 452
nodes 42831, 452
non-linear 65
normal distribution 5401, 582
objective function 405, 407
occulting lights 293
ocean lights 293
odds 5679, 582
offset method of surveying 333
open half-plane 383
ordnance levels 348
orienteering 299, 3702
outflow 445
outliers 20811
pace length 325
Pascal, Blaise 5267
Pascals triangle 51422
binomial coefficients 526
perimeters 31821, 3224
computer, finding by 325
measuring 3256
pace length 325
permanent survey marks 367
polygons 322
areas 3224
populations 1768, 241
census 177
obtaining information 1778
samples 178
port 285
positively skewed 206
present value 27
priceearnings ratio 154
prime meridian 251
principal 5, 1215
probability 492
additional rule of 5034
common fallacies in 575
distributions 51415, 534
general addition rule for 51011
normal curve and 542
using histograms to estimate 21516
profile 348
668

I n d e x

profile level 348
Pythagoras theorem 31819
questionnaires 177, 1836
bias in design 188
queues 484
multiple service points 47981
one service point 4725
terms 472
radiation survey 342
random sampling 17983
generating random integers using spreadsheet 1823
rate of interest 5
real estate transactions 14851, 168
renting or buying 152
reducing balance loan 112
reverse bearings 2701, 336
rock, paper, scissors 581
roulette 573
running fix 2835
salvage value 70
sample size 179
samples 177, 17886, 241
data and contingency tables 193201
sampling 178
random 17983
sampling bias 18790Z
scale diagram, drawing 341
scatterplots 21923
scores
comparison of 5479, 582
distribution of 5527, 582
standardised 5667

z

-scores 5435
segmented bar chart 193
share market 154
share performance
graphing 1602
shares 153
face/par value 154
industrial 1656
market price 154
shortest paths 4412, 452
algorithm 441
simple interest 59, 51
calculation formula 5
compound interest comparison 24
spreadsheets 17
transposed formula 13
simple interest functions
comparing compound interest functions using
graphics calculators 413
comparing compound interest functions using
spreadsheet 445
graphing 1821, 51
simultaneous equations 387
simultaneous linear equations 38790, 419
simultaneous linear inequations 3916, 419
sine ratio 31920
site plans 3678
skewed distributions 2068
sliding-line method 401
small circles 251
spanning tree 433
spreadsheets
comparing simple and compound interest
functions 445
compound interest 345
depreciation types comparison 834
generating random integers 1823
loan repayment schedule 1256
simple interest 17
staffs 326
standard deviation 542
standard normal tables 55965
standardised scores 5667
starboard 285
statistics
bias in interpretation 18990
stem-and-leaf plots 20511, 241
stern, the 285
stock market investment 1537, 1656, 168
straight line depreciation 64, 702, 99
diminishing value depreciation comparison 834
survey 177
survey line 326
survey methods 3269, 331, 3335, 33640, 3425,
34752, 373
symmetric distributions 205
systems 397
term deposit 5, 13740, 167
term of a loan 107
theodolite 347, 352
topographic maps 3525, 373
local features 35960
transit fix 2812
transit line 281
traversing survey 3434
tree 433
tree diagrams 493, 4968
triangles
area 31821, 373
triangulation method of surveying 333, 334,
3368
true bearings 26970
true north 266, 354
two-transit fix 281
two-up 5712
Venn diagrams 50712, 534
vertical interval 360
Wall Street Crash 1929 164

z

-scores 5435, 582

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The normal distribution

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Method 2: Using parallel rulers

Time Teller 1 Teller 2 Arrivals

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